How to Figure Home Equity

Video Transcript

"Hi so you are a homeowner and you are wondering how to calculate the equity or if you have any equity in your property. No problem, I'll be able to answer that. My name is Adriel Torres and I'm the owner of ultimate credit today dot com. Now equity basically means the difference between what the property is worth and what is owed that is called equity. So if you owe fifty thousand dollars and your property is worth a hundred thousand dollars the equity is essentially fifty thousand dollars. Assuming that your property will sell for one hundred thousand dollars at a fair market value. Now to calculate the equity you would have to obviously know what the property is worth and you can determine that in one of several ways. One you can contact your local real estate agent, or you can ask in the neighborhood of someone who's sold their property, or you can look in the county records to see what the property have sold, and obviously you have to make sure that the property is comparable to yours as far as square footage, bedrooms, bath things like that. Now once you know what the property is worth and what you owe then you can determine what equity you have in your property. Hopefully you have a lot of it. Thank you very much, my name is Adriel Torres. I'm the owner of ultimate credit today dot com. Thank you."