Home Value and Home Equity Are Not the Same Thing

Home value is an estimate of what a property could sell for in the current market. Home equity is the part of that value that remains after mortgage debt and transaction costs.

A homeowner can have a high estimated value and still have limited usable equity if the mortgage balance is also high. That is why tracking loan-to-value matters.

Before refinancing, selling, or borrowing against the home, compare gross equity, net equity, and lender-specific usable equity thresholds.