What is home equity and how does it relate to refinancing your mortgage?

Question

Thank you.

Answer 1

The amount of equity you have will determine what the bank will loan you based on your qualifications.

Equity is the value of your home minus what you owe on it:

300,000 Value
200,000 Owed
____________
100,000 Equity

This is the money you could take with you after expenses if you sold the home.