Question 1

What is home equity?

Accepted Answer

Home equity is your home value minus outstanding mortgage and other liens. It represents the portion you truly own.

Question 2

How do I build home equity?

Accepted Answer

By making mortgage payments, home appreciation, extra principal payments, and home improvements.

Question 3

What is a good amount of home equity?

Accepted Answer

20% equity is the minimum to avoid PMI. 50%+ provides financial flexibility.