Your home equity is the value of your home, minus total outstanding debt — such as mortgages and liens — registered against title to the property. Calculate as follows:
Property value – total debt secured by the property = home equity
Example: If your property is worth $500,000 and the mortgage is $400,000, your home equity is $100,000 ($500,000 - $400,000 = $100,000).
Your home equity increases as the debt secured by the property decreases.