How is home equity calculated? Basically, it’s your home’s current value, minus the amount you owe on it. The equation would look something like this: The current value of your home: $200,000 – Remaining mortgage balance: $125,000 = Home Equity: $ 75,000 But, building home equity takes time. Each month, a portion of your mortgage payment goes toward the loan principal. You build equity as your principal decreases, which usually occurs over many years. If you want to speed up the process so you can build equity faster, here are four things you can do. Make a Larger Down Payment The…
4 Ways to Boost Your Home’s Equity
How is home equity calculated? Basically, it’s your home’s current value, minus the amount you owe on it. The equation would look something like this: The current value of your home: $200,000 – Remaining mortgage balance: $125,000 = Home Equity: $ 75,000 But, building home equity takes time. Each month, a portion of your mortgage payment goes toward the loan principal. You build equity as your principal decreases, which usually occurs over many years. If you want to speed up the process so you can build equity faster, here are four things you can do. Make a Larger Down Payment The…