Home Equity Calculator
Building home equity is a gradual process.
Some things that affect equity are out of your control — like the housing market — but there are other things you can do to help your equity grow.
Regular Payments
Simply making your payment each month will increase your equity over time as the loan balance decreases.
Extra Payments
Additional payments toward your loan balance can increase your equity and decrease the length of your loan.
Home Improvements
Home upgrades and energy-saving renovation projects can increase the value of your home, building equity.
Home equity is the amount of your home that you actually own. Specifically, equity is the difference between what your home is worth and what you owe your lender. As you make payments on your mortgage, you reduce your principal – the balance of your loan – and you build equity.
When you sell your home, you can use your equity as a down payment on your next home.
You may also be able to take some of your equity out as cash. Rocket Mortgage offers a couple ways to do this:
- Cash-out refinance
- Home equity loan
You won’t be able to take out the full amount of equity that you have. Most lenders require you to leave a certain percentage in your home.
Yes! A home equity loan lets you access your equity with refinancing your current mortgage. There are a few things you’ll need to qualify for a home equity loan:
- You’ve paid down your mortgage enough to take out at least $45,000.
- You can afford a second payment. Home equity loans have fixed interest rates, so the payment won’t change.
- Your FICO® score is at least 680.
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