How Much Equity Do I Have
in My Home?
Equity is simply the difference between:
what your home could sell for and what you still owe on your mortgage.
Understanding your equity can help answer important questions like:
- Could you afford to move to another home?
- Would selling provide extra cash after closing?
- Is refinancing or a home equity line an option?
But calculating equity isn’t always as simple as subtracting your loan balance
Your Mortgage Statement Doesn’t Show the Full Payoff
One thing many homeowners don’t realize is that the balance shown on your monthly mortgage statement is not always the exact amount required to pay off the loan.
To get the true number, lenders must provide something called a mortgage payoff statement.
A payoff statement includes:
- The remaining loan balance
- Interest owed through the payoff date
- Administrative fees
- Any other applicable charges
Because of these additional items, the final payoff amount can sometimes differ from the balance shown on your statement by hundreds or even thousands of dollars
Equity and Net Proceeds Are Not the Same Thing
Even if your home has significant equity, the amount you would actually receive after selling may be different.
That’s because selling a home involves several costs, including:
- Real estate commissions
- Title and closing fees
- Transfer taxes
- Attorney fees
- Mortgage payoff
After these costs are accounted for, the remaining amount is often referred to as net proceeds.
Understanding the difference between equity and net proceeds helps create a more realistic expectation of what selling might look like financially.
Estimate What You Might Net From Your Home Sale
If you’d like a rough estimate of what you might receive after selling your home, you can request a quick net proceeds estimate below.
Why Many Homeowners Check Their Equity
Understanding your equity can help you make better decisions about your next move.
Some homeowners check their equity because they are:
A payoff statement includes:
- Considering moving to a larger home
- Thinking about downsizing
- Relocating for work
- Exploring investment opportunities
Even if you aren’t planning to sell immediately, knowing where you stand financially can be helpful.
Considering Selling Your Home?
If you’re exploring the possibility of selling, understanding both your home’s value and your potential net proceeds can help you decide whether now might be the right time.
