Home equity
Equity
The share of your home you actually own — its market value minus everything you owe against it. Equity grows as you pay down principal and as the home appreciates.
What does equity mean?
Equity is your ownership stake: a $300,000 home with a $210,000 mortgage holds $90,000 of equity. It builds two ways — by paying down principal and by the home rising in value — and it's what you tap with a HELOC, a home equity loan, or a cash-out refinance. Many Michigan owners have far more equity than they realize after values climbed since 2020. Lenders generally let you borrow against equity only down to 80–90% combined loan-to-value, so you keep a cushion of ownership.
Common questions
How do I build home equity?
Two ways: paying down your principal and the home rising in value. Many Michigan owners gained substantial equity as values climbed since 2020.
How much equity can I borrow against?
Usually down to 80–90% combined loan-to-value, so you keep a cushion. You access it via a HELOC, home equity loan, or cash-out refinance.
What is negative equity?
Owing more than the home is worth — being "underwater." It limits refinancing and selling, and is far less common in Michigan after recent value gains.
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