Learn How to Access and Use Your Home Equity


Home Equity FAQs

It’s normal to have questions when financing a home or other property. We’ve answered frequently asked questions to help guide you.

What is home equity?

Home equity is the portion of your home’s value that you actually own. It is calculated by subtracting your outstanding mortgage balance from your home’s current market value.

What factors affect the amount of home equity I can access?

Several factors impact how much home equity you can access:

  • Home Value: Higher home values increase the amount of equity available.
  • Outstanding Mortgage Balance: Lower mortgage balances increase your equity.
  • Credit Score: Lenders use your credit score to assess risk and determine loan terms.
  • Income and Debt-to-Income Ratio: Lenders consider your ability to repay the loan based on your income and existing debt levels.

 

Can I use home equity to buy another property?

Yes, you can use home equity to purchase another property. By taking out a home equity loan or HELOC, you can access funds to use as a down payment or for other costs associated with buying a new home.

Find Your Rate With HomeEQ

Make the most of homeownership with a straightforward Home Equity Line of Credit from HomeEQ. Access cash for your personal needs from home equity you’ve built.