Home Equity Loan

How do you know how much equity you have in your home?

We've owned a home for a year now and recieved a flyer from our bank about applying for a home equity loan. we want to apply so that we can possibly do a little debt consolidation (just a few thousand in student loans and credit cards) but how do you determine if/how much equity you have?

Public Comments

1. The bank would see what the appraised value of your home is, less the mortgage amout owed. This would then be your equity, if any.
2. what is the appraised value of your house vs. how much you owe on the house. for example: if you bought a $150,000 house-put down $10,000.00 and have paid $5,000 towards the principal (not interest) then your would have equity of $15,000.00. try working your debts smallest to largest and just paying them off. ck out this website: www.daveramsey.com--they helped us when we were in debt. it's just free advice--no consolidation, no fees--it's great!
3. Fair market value - what you owe = equity amount To find fair market value, consult an appraiser. I suggest you read this: http://mortgages.weblogsinc.com/2006/07/26/using-home-equity-to-pay-off-credit-debt/ and do some other research on the subject. Paying debts with the equity in your home is not often a smart move.
4. The other answers are right about equity. Fair market value - current mortgage(s) balance = equity. Some things you may not have thought about for home equity loans. The percent of equity you borrow will change the risk for the lender and therefore the cost of the loan for you. What I mean is, if you borrow the very last penny of equity it will be more expensive for you (a higher rate). If you have significant equity (which would only be if you put down a lot of money) then the loan wouldn't be as expensive. It really can make a difference in the interest rate. good luck!
5. Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy. http://best-loans.awardspace.com/Loan-Consolidation.htm Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.