Your home equity in the amount of money you have paid off on your home. Calculating your home equity is simple, you take the market value of your home and you subtract from it the current balance of your mortgages. In simple terms, your home equity increases as the amount you owe in mortgages decreases. In effect, if your home is worth $200,000 and your mortgage balance is $150,000 the home equity you possess is $50,000. With every mortgage payment you make, your home equity increases incrementally. By being consistent with payments you can build you credit score and achieve even better interest rates in the future.
Most homeowners can borrow against the equity in their home or other kind of real estate. Home equity loans allow property owners to borrow money by using their property as collateral. You can use the funds from a home equity loans for any purpose you deem fit, including: renovations, emergencies, tuition payments, and more. We do not put any restrictions on the use of the loan, you are free to do as you wish.
One factor that helps getting home equity loans is if you have made all of your mortgage payments. If you are able to reliably make payments it becomes easier to justify your loan, and you may qualify for better rates and borrow more funds.