How Much Equity Do I Have? 4 Ways to Find Out

Knowing how much equity you have in your home is essential for financial planning, refinancing decisions, and understanding your net worth. But if you're not sure how to find this information, you're not alone—many homeowners don't know their current equity position.

This guide walks through four practical methods to determine exactly how much equity you have, from quick estimates to precise valuations.

Why Knowing Your Equity Matters

Before diving into the methods, understand why tracking your equity is important:

Financial Planning Your [home equity](/blog/equity-vs-appreciation) is likely your largest asset. Knowing the exact amount helps with retirement planning, investment decisions, and understanding your overall financial health.

Refinancing Opportunities Lenders use your equity position (loan-to-value ratio) to determine eligibility and rates. Knowing you've crossed the 20% equity threshold could save you thousands by eliminating PMI or qualifying for better rates.

Borrowing Power If you need to tap equity for home improvements, education, or other expenses, knowing how much you can access prevents surprises during the application process.

Market Timing Understanding your equity helps determine if selling makes financial sense after accounting for transaction costs and your down payment on the next home.

Risk Assessment If you're close to breaking even or underwater (owing more than the home is worth), you need to know so you can adjust your financial strategy.

The Quick Formula

Before we explore the methods, here's the basic equation:

Home Equity = Current Market Value - Total Mortgage Debt

For example:

• Current home value: $550,000
• Remaining mortgage: $380,000
• Your equity: $170,000 (31%)

Now let's look at how to get accurate numbers for each component.

Method 1: Online Home Value Estimators + Mortgage Statement

Best for: Quick estimates and regular monitoring
Accuracy level: Moderate (±5-10%)
Cost: Free
Time: 5 minutes

This is the fastest way to get a ballpark figure.

Step-by-Step:

1. Find Your Current Mortgage Balance

• Log into your mortgage lender's website
• Check your latest monthly statement
• Call your servicer's automated line
• Most statements show: current balance, remaining term, and principal/interest breakdown

Pro tip: Your mortgage balance decreases with every payment, so use the most recent statement. If you're between statements, estimate based on your monthly principal reduction.

2. Estimate Your Home's Current Value

Use multiple online tools for the best estimate:

Zillow Zestimate

• Visit zillow.com and enter your address
• Note: Zestimates can be off by 5-20% depending on your market
• Check the "Zestimate Range" for accuracy confidence

Redfin Estimate

• Visit redfin.com and search your property
• Generally more accurate in markets where Redfin operates actively
• Shows recent comparable sales

Realtor.com Home Value Estimator

• Powered by multiple data sources
• Often provides conservative estimates

HonestCasa Value Tracker (shameless plug)

• Combines multiple data sources
• Tracks value trends over time
• Free automated updates

3. Average the Estimates

If tools show varying values, average them:

(Zillow + Redfin + Realtor.com) ÷ 3 = Estimated Value

Example:

• Zillow: $520,000
• Redfin: $535,000
• Realtor.com: $515,000
• Average: $523,333

4. Calculate Equity

$523,333 (value) - $380,000 (mortgage) = $143,333 equity (27.4%)

Pros:

✅ Free and instant
✅ Good for regular monitoring
✅ No appointments or appraisals needed
✅ Can track trends over time

Cons:

❌ Can be inaccurate in unique homes or low-transaction neighborhoods
❌ Doesn't account for recent improvements
❌ Won't satisfy lender requirements
❌ Algorithm-based, not human-verified

Method 2: [Comparative Market Analysis](/blog/how-much-is-my-house-worth) (CMA) from a Realtor

Best for: More accurate estimates without cost
Accuracy level: High (±3-5%)
Cost: Free
Time: 1-2 days

A CMA is a detailed analysis real estate agents provide showing what your home would likely sell for based on recent comparable sales.

How to Get a CMA:

1. Contact a Local Real Estate Agent

• Reach out to 1-2 well-reviewed agents in your area
• Be upfront that you're not selling immediately but want to understand your home's value
• Most agents provide this free, hoping to build a relationship for when you do sell

2. Agent Compiles Data They'll analyze:

• Recently sold homes (last 3-6 months) with similar features
• Currently listed homes (your competition)
• Pending sales (market direction)
• Your home's unique features, condition, and location

3. Review the CMA Report You'll receive a report showing:

• Estimated value range (usually $X to $Y)
• Comparable properties with photos and sale prices
• Adjustments for differences (your extra bathroom, their renovated kitchen)
• Market trends and conditions

4. Calculate Equity

Use the midpoint of the range or the agent's recommended listing price:

CMA Value - Mortgage Balance = Equity

Pros:

✅ More accurate than algorithms
✅ Human expertise and local knowledge
✅ Free service
✅ Accounts for condition and improvements
✅ Provides market context

Cons:

❌ Requires contacting an agent
❌ May involve a sales pitch
❌ Still an estimate, not guaranteed
❌ Takes a few days

Pro tip: Get CMAs from two different agents and average them for even better accuracy.

Method 3: Professional Appraisal

Best for: Precise valuation for refinancing, HELOC, or major decisions
Accuracy level: Very high (±1-2%)
Cost: $300-$600
Time: 1-2 weeks

An appraisal is the gold standard for home valuation. A licensed appraiser physically inspects your home and provides an official estimate.

When You Need an Appraisal:

• Refinancing your mortgage
• Applying for a [HELOC or [home equity loan](/blog/best-heloc-lenders-2026)](/blog/home-equity-loan-vs-heloc-2026)
• Removing PMI (sometimes required)
• Divorce or estate settlements
• Challenging property tax assessments
• Making major financial decisions based on equity

The Appraisal Process:

1. Order the Appraisal

• If refinancing, your lender orders it
• For other purposes, search "home appraisers near me" or use the Appraisal Institute's directory
• Cost: typically $300-$600 depending on home size and location

2. Appraiser Visits Your Home They'll:

• Measure square footage
• Photograph all rooms
• Note condition, upgrades, and maintenance issues
• Assess layout, functionality, and features
• Inspect exterior and lot

3. Research and Report The appraiser:

• Analyzes recent comparable sales
• Makes adjustments for differences
• Considers market conditions
• Prepares a detailed report (usually 15-30 pages)

4. Receive the Appraisal Report You'll get:

• Exact estimated value
• Comparable sales data
• Photos and measurements
• Detailed justification for the valuation

5. Calculate Precise Equity

Appraised Value - Mortgage Balance = Actual Equity

Pros:

✅ Highly accurate and reliable
✅ Required for most refinancing
✅ Legally defensible valuation
✅ Detailed documentation
✅ Accounts for everything (condition, improvements, market)

Cons:

❌ Costs $300-$600
❌ Takes 1-2 weeks
❌ Requires scheduling and home access
❌ Value can come in lower than expected

Method 4: Check Your Lender's Online Portal or Equity Statement

Best for: Quick check if your lender provides equity tracking
Accuracy level: Moderate
Cost: Free
Time: 2 minutes

Some mortgage servicers now provide equity estimates directly in your account dashboard.

Lenders Offering This Feature:

• Rocket Mortgage: Shows estimated home value and equity
• Chase: Provides equity estimates in their app
• Wells Fargo: Offers home value and equity tracking
• Bank of America: Shows estimated equity for mortgage customers

How to Use It:

1. Log into your mortgage account online
2. Look for sections labeled "Home Value," "Equity," or "Property Value"
3. Review the estimate and calculation methodology
4. Note the data source and last update date

Pros:

✅ Instant and free
✅ Integrated with your mortgage balance
✅ Convenient monitoring
✅ Often updates regularly

Cons:

❌ Not all lenders offer this
❌ Relies on automated estimates
❌ Similar accuracy issues to online estimators
❌ May be conservative (lenders are risk-averse)

Understanding Your [Equity Percentage](/blog/how-to-calculate-home-equity)

Once you know your dollar amount, calculate your equity percentage:

(Equity ÷ Home Value) × 100 = Equity %

Example: $170,000 equity ÷ $550,000 value = 30.9%

Why Percentages Matter:

Less than 20% equity:

• You'll pay PMI on conventional loans
• Refinancing options may be limited
• Higher risk if values decline

20% equity:

• Magic threshold for removing PMI
• Better refinancing rates become available
• Considered "safe" by lenders

30%+ equity:

• Excellent refinancing options
• Strong position for home equity loans/HELOCs
• Good cushion against market downturns

50%+ equity:

• Maximum borrowing power
• Best possible rates
• Significant wealth accumulation

How Often Should You Check Your Equity?

Every 3-6 months: If you're monitoring the market, considering refinancing, or planning to sell within 2 years

Annually: For general financial planning and net worth calculations

When considering major decisions: Refinancing, taking out a HELOC, selling, or removing PMI

After significant market changes: If your area experiences a boom, recession, or major development

What to Do After You Know Your Equity

Now that you know your number, here's how to use it:

If You Have Low Equity (Under 20%):

• Focus on principal paydown strategies
• Avoid tapping equity unless absolutely necessary
• Consider making extra payments
• Wait before refinancing (unless rates are dramatically lower)

If You're at 20% Equity:

• Request PMI removal immediately
• Explore refinancing opportunities
• Consider if now is the time to access equity for value-adding improvements

If You Have Substantial Equity (30%+):

• Review refinancing to lower rates or shorter terms
• Consider strategic use of equity for high-ROI investments
• Evaluate home equity loan or HELOC options
• Update your net worth and financial plan

If You're Over 50% Equity:

• You have significant options and flexibility
• Consider whether equity is too heavily concentrated (diversification)
• Explore reverse mortgage options if nearing retirement
• Evaluate downsizing opportunities if appropriate

Special Situations

Multiple Mortgages

If you have a first mortgage and second mortgage or HELOC:

Equity = Home Value - (First Mortgage + Second Mortgage + HELOC Balance)

Condos and Co-ops

These can be harder to value. Online estimators are less accurate, so lean toward CMAs or appraisals.

Recent Renovations

Online estimators lag behind improvements. Get a CMA or appraisal to capture added value.

Declining Markets

If your area is experiencing falling prices, be conservative. Use the lower end of estimate ranges.

The Bottom Line

You have four solid methods to determine your home equity, ranging from quick and free (online estimators) to precise and professional (appraisals). For regular monitoring, use Method 1. For serious financial decisions, invest in Method 3.

The best approach? Start with online estimators every few months, get a CMA from an agent annually, and order an appraisal when you're refinancing or making major financial moves.

Knowing your equity isn't just about numbers—it's about understanding your wealth, spotting opportunities, and making informed decisions about your largest asset.

Track your equity automatically with HonestCasa's free monitoring tool and get alerts when you hit key milestones like 20% equity or when your home value changes significantly.

Related Articles

• [[Home [Equity Explained](/blog/home-equity-explained)](/blog/what-is-home-equity): What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• [The [Home Appraisal](/blog/appraisal-process-explained) Process Explained: What Every Buyer and Seller Should Know](/blog/appraisal-process-explained)