How to calculate equity in home?

To calculate equity in your home, you need to subtract the amount you owe on any mortgages or loans secured by the home from the current market value of the home. Here's how you can approach it:

1. Determine the current market value of your home: This might involve getting an appraisal or looking at recent similar home sales in your area.

2. Subtract the amount you owe: From the current market value, subtract the total amount you still owe on your mortgage and any other loans secured by your home.

For example, if your home is currently worth $300,000 and you owe $200,000 on your mortgage, your home equity would be $100,000.

Additionally, if you're paying Primary Mortgage Insurance (PMI) and your equity exceeds 20% of the home's value, you can contact your lender to discuss removing the PMI, which can save you money on your monthly payments 1.