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TMAP’s Simple Equity Calculator can help you easily determine your current home equity. Simply enter your home’s current market value and your remaining mortgage balance to get an instant estimate of your equity.
If you’re ready to build your property portfolio, join our next webinar to discuss your equity with our team. If you’re already a member, you can access our lessons on Compounding from the Kajabi app.
What is Home Equity?
Simply, home equity is the difference between the property’s current value and the homeowner’s mortgage balance. As you pay down your mortgage and as your property value increases, your home equity grows. Understanding your home equity is crucial, and at Teach Me About Property we encourage our students to work hard to “Grow the Gap” so that this valuable asset can be leveraged for building your property portfolio.
How can I use my Home Equity?
Home equity can be a powerful tool for expanding your investment portfolio. By tapping into your home equity, you can access funds for a down payment on investment properties. This strategy, often referred to as “leveraging your equity,” allows you to invest in additional real estate, potentially increasing your assets and income streams. It’s a common method used by many property investors to grow their portfolios more rapidly and efficiently.
Does Home Equity always increase?
No, home equity is not static. It can change over time as the market value of your property fluctuates and as you pay down your mortgage. Regularly calculating your home equity is important to understand your current financial standing and make informed decisions about your property.
