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\n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
What is home equity?<\/h2>\n
Home equity<\/a> is essentially the portion of your property that you own outright. It’s calculated as the difference between the current market value of your home and the remaining balance on your mortgage. This means that as you pay down your mortgage, the equity \u2013 the part of the property you own free of any debts \u2013 increases. Home equity is a significant financial asset, representing a homeowner’s stake in their property.<\/p>\n Each mortgage payment you make reduces the amount you owe and typically increases your equity. Additionally, if your home’s market value appreciates over time, your equity grows even more. This growth in equity can be a powerful financial tool, offering opportunities for further investments or as a safety net in your overall financial strategy.<\/p>\n Let\u2019s look at an example of how home equity can grow over time. Alex bought a home seven years ago for $235,000. For this simplified example, we\u2019ll assume Alex used a VA loan with no down payment. Here\u2019s how the equity in Alex\u2019s home might have increased:<\/p>\nHow does home equity work?<\/h2>\n
Home equity growth example<\/h3>\n
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