Home Equity Calculator: Unlock Your Hidden Wealth
Your home isn't just a roof over your head – it's a financial powerhouse! Let's see how much equity you've built.
Home Equity 101: Your House is a Piggy Bank (But Smarter)
🏦 Fun Fact: The average U.S. homeowner gained $60,000 in equity between 2020-2023!
What Exactly is Home Equity?
Think of it like your home's "savings account" – the portion you truly own. If your house is worth $500k and you owe $300k on the mortgage, you've got $200k in equity (40%).
3 Clever Ways to Use Home Equity
🏡 Home Improvements
Renovations that increase value (like kitchens/baths) often pay for themselves.
🎓 College Tuition
Typically lower rates than student loans (avg. HELOC rate: 7.5% vs 12%+ for private student loans).
💸 Debt Consolidation
Swap high-interest credit cards (18-25%) for a lower-rate HELOC.
Current HELOC Rates (June 2024)
| Credit Score | HELOC Rate Range |
|---|---|
| 760+ (Excellent) | 6.5% - 8.0% |
| 700-759 (Good) | 8.0% - 9.5% |
| 660-699 (Fair) | 9.5% - 11.5% |
⚠️ Watch Out!
HELOCs have variable rates – your payment could rise if interest rates increase. Always have a repayment plan!