Home Equity Calculator

Understanding Your Home Equity

Home equity is your most valuable financial asset for most Americans. It grows in two ways: mortgage paydown (your monthly payments reduce the principal) and market appreciation (your home's value increases over time). In rising markets, appreciation can outpace your paydown, but neither is guaranteed.

HELOC vs. Home Equity Loan vs. Cash-Out Refinance

A HELOC gives flexible access to your equity at a variable rate, good for ongoing projects. A home equity loan gives a lump sum at a fixed rate, ideal for large, one-time needs. A cash-out refinance replaces your entire mortgage with a new larger one, potentially at a better rate if current rates are lower than your existing mortgage. Compare total closing costs and monthly payments across all three before deciding.

Frequently Asked Questions