How Much Equity Do I Have In My Home?

If you’re a homeowner with borrowing needs, your banker may recommend applying for a home equity line of credit. This secured borrowing option generally lets you borrow with a lower interest rate than credit cards or personal loans by using the equity in your home as collateral. But what is home equity, and how is it calculated? Our quick guide can help you estimate your potential home equity.

What is home equity?

Home equity is the difference between what your home is worth and how much you currently owe on your mortgage. Most people must apply for a mortgage in order to purchase a home. Over time, this mortgage is paid down until the loan is completely repaid. In addition to making payments to reduce the balance owed, you can also build equity if your home’s value increases. You can find out how much equity you currently have in your home by calculating the difference between your house’s value and your current loan balance.

Determining your home value

One thing to keep in mind is that your home’s value can change over time due to the economy, changes in property values, repairs, renovations, and other factors. There are a variety of online tools to help you estimate your home’s current value based on the sales price of other comparable properties in your area. If you are applying for a home equity line of credit, Santander Bank will determine if an appraisal is necessary to process your application, and your home will be appraised at no cost to you.

How do you calculate home equity?

You can estimate your home’s equity by subtracting your remaining loan balance and your home’s appraised value.

For example:


Home’s appraised value: $250,000
Loan balance: $110,000
$250,000 – $110,000 = $140,000


Knowing your home value and loan balance can also help you calculate your loan-to-value ratio, which we’ll use to help determine if you’re eligible for a home equity line of credit and how much you qualify to borrow.

Learn how to calculate your loan-to-value ratio.

Make use of your home equity with Santander Bank

If you’re ready to utilize your home equity, Santander Bank is ready to help. Our personal bankers will help you apply for a home equity line of credit (HELOC) that lets you access the cash you need, when you need it. Our HELOC features two monthly payment options, interest-only or principal and interest, as well as a fixed-rate lock option that lets you enjoy predictable monthly payments by converting all or a portion of your outstanding balance to a fixed-rate loan.


Best of all, you can take advantage of a rate discount when you set up automatic payments from any Santander Bank checking account. Contact us to learn more at 844-726-6849, apply online, or stop by your nearest branch to speak with someone in person.