Can you use your home equity to refinance or buy another property?
When you take out a mortgage, your lender maintains an interest in your home until your debt is completely paid off. Home equity reflects the portion you own outright — that is, the difference between what your home is worth and the outstanding balance on your mortgage. To determine how much equity you have, you’ll first have to find out how much your property is worth. You can do this by hiring an assessor to conduct a formal valuation, using an online tool, or estimating using comparable sales in your area.Once you have your property’s value, simply subtract the amount still owed on your mortgage. If, for example, your property is valued at $800,000 and you owe $600,000, you’ve built up $200,000 of equity.Read More