How to Find Equity in My Home | Know Your Real Number

Home equity is your home’s current market value minus the total you still owe on mortgages and any other liens.

You can get a solid equity number in under an hour, as long as you keep two ideas separate: what your home could sell for today, and what you’d have to pay off if you sold it today. Put those together, and you’ll know where you stand.

This matters for real decisions: refinancing, a home equity loan or HELOC, dropping PMI, cash-out plans, divorce math, estate planning, or setting a sale price that won’t surprise you at closing. Let’s get you the clean, lender-style number, plus a “real life” range you can trust.

What counts as equity and what does not

Equity is not your down payment. It is not the amount you’ve paid over time. It is a snapshot taken today.

Equity basics

• Market value: what a buyer would likely pay right now.
• Total debt tied to the home: first mortgage balance, second mortgage, HELOC limit (lenders often count the full line), and any recorded liens.
• Equity: market value minus total debt tied to the home.

Two equity numbers you should track

Most homeowners do better when they track two versions:

• Paper equity: value minus debts. This is the starting point lenders use.
• Net equity after sale costs: paper equity minus likely selling costs (agent commission, transfer taxes, repairs, staging, seller concessions). This is the “money in your pocket” view.

How to Find Equity in My Home with simple math

Here’s the exact calculation. You can do it on a phone calculator.

Step 1: Estimate your current market value

Start with a realistic price, not a hopeful one. Use at least two signals:

• Recent comparable sales: same neighborhood, similar size, similar condition, sold within the last 90 days if possible.
• One or two automated estimates: treat these as a range, not a final answer.
• Local trend reality: if prices are rising or falling in your area, older comps can mislead. The FHFA House Price Index explains how home values shift over time and can help you sanity-check direction.

Quick value range rule

If your sources disagree, don’t force one number. Keep a low-to-high range. Equity decisions get safer when you plan around the low end.

Step 2: Pull your payoff amounts, not just your balances

Your mortgage statement balance is a start, yet it can differ from what you’d owe on a given day. For the cleanest number, request a payoff quote from your servicer for:

• First mortgage
• Second mortgage (if any)
• HELOC (if any)

If you only have statements, use the current principal balance and note that interest accrues daily. When you later get payoff quotes, your equity number tightens.

Step 3: Add any liens you know exist

Equity gets reduced by liens tied to the property. Common ones include tax liens, judgment liens, and mechanic’s liens. If you’re unsure, a title company or attorney can run a title search.

Step 4: Do the subtraction

Paper equity = current market value − (all mortgage balances and liens)

That’s it. No extra tricks.

Step 5: Convert equity into the number lenders often use

Many lending decisions revolve around loan-to-value style ratios. A lower ratio usually means easier approval and better pricing. Fannie Mae outlines how LTV ratios are calculated in its selling guide: Loan-to-Value (LTV) Ratios.

LTV = (total mortgage debt ÷ market value) × 100

If you have a HELOC, lenders may look at combined ratios that include the line. Knowing your ratio helps you predict how a lender will view your file before you apply.

Finding equity in your home with lender-style numbers

Once you have your value range and payoff numbers, you can build three equity views that cover most real decisions.

View 1: Conservative equity

Use the low end of your value range and the highest realistic payoff total. This is the “sleep well” number.

View 2: Midpoint equity

Use the middle of your value range and your most likely payoff totals. This is good for planning.

View 3: Net equity after sale costs

If you’re thinking about selling, subtract likely sale costs. In many markets, the gap between paper equity and net equity surprises people.

Use a simple placeholder list of costs you can replace later with real quotes:

• Agent commission
• Seller-paid closing costs or concessions
• Transfer taxes and recording fees
• Repairs requested after inspection
• Staging, cleaning, paint, landscaping

Net equity is not a lender term. It is a decision term.

Ways to estimate value and equity with trade-offs

No single method fits every situation. Use the mix that matches your goal: casual tracking, applying for a loan, listing for sale, or settling a legal or tax matter.

Method	Best use	Trade-offs
Recent comparable sales (DIY)	Fast reality check before any big move	Needs honest comp selection and condition matching
Automated estimate range	Monthly tracking and spotting big swings	Can miss renovations, damage, unique lots, local quirks
Broker price opinion from an agent	Pre-list planning and pricing discussions	Quality varies; may reflect listing strategy, not strict valuation
Refinance or purchase appraisal	Lender-backed valuation for underwriting	Costs money; value is a point-in-time opinion
Desktop or hybrid appraisal	Some lending cases with quicker turnaround	May rely more on data than a full walk-through
Payoff quote from servicer	Sale, refinance, or exact equity math	Time-limited; changes as interest accrues
Title search	Confirm liens and clear surprises	Small cost; takes time; still needs payoff figures
Local price index check	Adjust older comps to today’s direction	Index is broad; your home may move differently

When your equity number gets tricky

Most equity math is clean. The messy parts come from timing, second liens, and value uncertainty.

HELOCs: lenders may count the full line

With a HELOC, some lenders treat the full credit line as debt for ratio math, even if you haven’t drawn it. That can shrink the usable equity you can borrow against. The CFPB HELOC booklet spells out the basics, including the risk that falling behind can put the home at risk: What you should know about home equity lines of credit.

Second mortgages and silent liens

A second mortgage is easy to miss if you only look at your primary statement. Pull statements for every loan tied to the house, then match them to your credit report and any closing paperwork you saved.

Renovations: value and cost are different numbers

Putting $40,000 into a kitchen does not mean the home value rises by $40,000. Some projects return a chunk of cost, others mostly buy comfort. For equity planning, treat renovations as a reason to re-check comps, not as a direct add-on to value.

Market shifts: equity can move without a single payment

If local prices drop, equity can shrink even as you pay down principal. If local prices rise, equity can grow without extra effort. That’s why keeping a value range is smart.

What you can do with equity and what it can cost you

Equity is a tool. It can fund repairs, remodels, education, debt consolidation, or emergency reserves. It can also backfire if the payment becomes hard to carry or if home values dip.

Common ways people tap equity

• Home equity loan: lump sum, fixed payment.
• HELOC: revolving credit line, often variable rate.
• Cash-out refinance: replaces your mortgage with a larger one.

Tax note for equity borrowing

Rules can change, and personal situations differ. The IRS states that interest on home equity loans or lines of credit is deductible only when the borrowed funds are used to buy, build, or substantially improve the home that secures the loan, under the rules in Publication 936, Home Mortgage Interest Deduction. If you plan to itemize, keep clean records showing where the funds went.

A practical equity worksheet you can reuse

Use this as a repeatable check. It keeps your numbers consistent month to month and makes loan conversations easier.

Line item	What to use	Where to get it
Low value estimate	Conservative price	Lower end of comp-based range
High value estimate	Stretch-but-realistic price	Upper end of comp-based range
First mortgage payoff	Payoff quote or principal balance	Servicer payoff statement or mortgage statement
Second mortgage payoff	Payoff quote or principal balance	Servicer payoff statement or statement
HELOC amount counted	Full line or current balance (track both)	HELOC statement and credit agreement
Other liens	Any recorded amounts	Title report or county records
Paper equity range	Value minus total debts	Your worksheet math
Estimated selling costs	Commission + fees + likely repairs	Agent quote and local closing-cost norms
Net equity range	Paper equity minus selling costs	Your worksheet math

Common mistakes that make equity look bigger than it is

These slip-ups are common, and they can lead to rough surprises right when you need clarity.

Using an outdated value

Home values move. If your comps are older, adjust your expectations and re-check recent sales.

Ignoring the HELOC credit limit

If a lender counts the full line for ratios, your usable equity can be lower than you thought, even when the current draw is small.

Forgetting sale costs

Paper equity is not cash. If selling is on the table, net equity is the number that keeps plans realistic.

Mixing “what I paid” with “what it’s worth”

Purchase price matters for history, not for today’s equity. Today’s market decides today’s value.

Last check: a fast equity decision ladder

If you want one simple process you can repeat, use this ladder:

1. Set a low-to-high value range using comps and at least one automated estimate.
2. Request payoff quotes for each loan tied to the home.
3. Add liens you know exist, then run the subtraction for paper equity.
4. Run a net equity view if selling is possible within the next year.
5. If borrowing, calculate your ratio view so you can predict lender limits before applying.

Once you do this once, keeping it current is easy. Update the value range, refresh payoff totals, and your equity picture stays grounded.