Financial glossary
Home Equity
In plain English
The portion of a property’s value owned by the homeowner, calculated as market value minus outstanding mortgage debt.
Home equity is the property’s market value minus the balance owed on mortgages and other liens. It can support a HELOC or a home equity loan, but borrowing converts equity into secured debt. Estimate the payment and total interest before borrowing with the home equity loan calculator.
Related calculators
- HELOC Payment CalculatorEstimate a HELOC interest-only draw payment and the fully amortizing repayment payment, including the payment jump after the draw period.
- Home Equity Loan CalculatorEstimate a fixed-rate home equity loan payment, total interest, and combined payment with your existing mortgage.
- Mortgage CalculatorEstimate a complete monthly mortgage payment with principal, interest, property tax, insurance, PMI, and HOA dues. See total interest and loan cost.