How to Calculate Home Equity You already know a home is an important investment, yet did you know the equity you have in your home can be used as a factor in determining the right time to sell? In the simplest terms, equity is the difference between the market value of your home and how much you owe on your mortgage. Your down payment actually marked your first stake of equity in your home. As you pay down your mortgage, your equity in your home continues to increase. Other factors that can increase your home equity include improvements on your (0 comments)