How can I calculate and track my home equity?​

Calculating and tracking your home equity is an easy process with a few pieces of information.  

With this information, you can either calculate and track your home equity yourself or by signing up for an alert. But before that, it is important to understand what home equity is and how it can help you. 

Home equity refers to the amount of your home that you own outright, or the difference between your home’s value and mortgage balance. Homeowners can access their home equity to fund expenses they may have. Home equity can be accessed through several loan options, the most popular of which is a home equity line of credit (HELOC)*. 

Access your home equity today by starting a HELOC application. 

You can calculate home equity easily with two pieces of information: your remaining mortgage balance and home’s current value. 

Calculating home equity is as simple as subtracting your remaining mortgage balance from your home’s current value. This will tell you the dollar amount of home you own. To figure out the percentage of home equity, take that number and divide it by your home’s current value and the multiply by 100. If you no longer have a mortgage, your home equity will be 100% or just your home’s current value. 

HELOCs and other home equity loan options allow you to access a portion of your total home equity. Calculating the home equity you can access could vary from lender to lender. 

Yes, you can track the equity in your home by yourself or through alerts. 

You can track your home equity yourself by regularly reviewing your home’s current value and mortgage. Then you will be able to use the formula above to track any changes in your home equity. 

If you do not want to manually check your home equity regularly, you can sign up for home equity alerts.  

You can sign up for home equity alerts online to inform you when there are changes in your home equity. 

To sign up for alerts, you will need to provide your address for updated market value, mortgage information to track your remaining balance and your phone number. After you have set up your alert, you will be informed when your home equity changes.  

If you are looking to increase the equity you have in your home, there are a few things you can do.  

It is important to note that your home equity is tied to your home’s current value, which is affected by the housing market in your area. While this is one factor in determining home equity that is out of your control, there are several factors you could control. 

Paying down your mortgage is something that you will do no matter what. What many homeowners don’t realize is that this process is building their home equity. Because your home equity is determined by your remaining mortgage balance, every payment on your loan could increase your home equity. Of course, this is one of the slower ways that you could increase your equity. 

While refinancing to a shorter term typically means larger payments each month, it could pay off your mortgage and build your home equity quicker. Think of this as a more aggressive version of the previous step.  

Remodeling or renovating your home could increase your home equity while improving your living conditions. These home projects boost your home equity by increasing the value of your home. Depending on where you live, there could be certain home renovations that increase your home equity more than others. If your goal in remodeling is to increase your home equity, look into which projects have the best return on investment. 

You could even use your home equity to help fund these projects. Using a loan that accesses your home equity, like a HELOC, for your remodels or renovations can be beneficial as it could boost your home value and equity. 

You can apply for a home equity line of credit (HELOC) today through an online application. 

Online HELOC applications could be completed in as little as 10 minutes and connect borrowers with a trusted Loan Officer. The Loan Officer you are connected to is available to help you with the application process and answer any questions you may have. 

Apply for a HELOC today with an online application. 

_{*Rate home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Kentucky, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Rate for more information and to discuss your individual circumstances. Restrictions Apply.}