Home equity seems to be a very simple calculation — the total amount of mortgages owed subtracted from the current market value of a home. Here is a simple example: Current Home Market Value: $325,000 Existing Mortgage: $225,000 Homeowner Equity: $100,000 One side of the equation is well defined, and it is found on the monthly mortgage statement, the loan balance. The other side is less obvious...
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