MORTGAGE KNOW HOW
Ready to access your home equity?
Have you been considering a major remodeling project? Finally ready to take that over-the-top vacation you always dreamed of? Need funds for your child's college education? You can use the equity in your home to fund almost anything. So, whatever the reason, we can help you do the math to come up with the option that best fits your situation.
What is home equity?
Home equity is the value of your ownership in a home. Here's how you calculate it:
Current Value of Your Home - Total Home Loan Debt = Home Equity
Here's an example. Most of the time you can make a fairly educated guess as to the current value of your home. If you are really unsure, you can check public records for the county value of your home. Let's say you determine that the value of your home is $250,000.
Next, consider all of the debt secured by your home. This includes your primary home loan, but also any second loans or other money you borrowed using your home as collateral. For this example, the only debt is your primary home loan, with a loan balance of $150,000.
So, the math looks like this: $250,000 (current value of your home) - $150,000 (total home loan debt) = $100,000 (home equity)
How much of my home equity can I borrow?
If your primary or first home loan is with us, we can loan you up to 90% of the value of your home. The value of your home will be determined by a certified appraisal. Here's an example. An appraiser determined the current value of your home is $250,000. Your total home loan debt is $150,000. We will loan up to 90% of the value of your home.
- $250,000 (current value of your home) x 90% = $225,000
- $225,000 - $150,000 (total home loan debt) = $75,000
- You may be able to access up to $75,000 in home equity.
Review the options
When it comes to accessing your home equity, there are a couple ways that you can borrow and repay those funds. We offer a Home Equity Line of Credit (HELOC) or an amortized fixed-rate home equity loan. Learn more about what we offer.
