← Back to Education CenterUnderstand what you own in the home
Home Equity Basics
Home equity is the difference between the home's current value and the outstanding mortgage balance. Some borrowers may be able to access part of that equity through a home-equity loan or HELOC.
01
Potential uses
Home-equity proceeds can be used for major expenses such as renovations, education, debt consolidation, or other goals, subject to lender terms.
02
The home is collateral
Because the borrowing is secured by the home, missed payments can create serious consequences. The decision should be made in the context of the household's full financial picture.