Equity question in home

[paddyshadarack]

Hi trying to figure out equity hope for help

When working out equity in a home

Say for example I borrowed 200k 5 years ago

Answer A.. Is it the current market value of house minus 200k(minus all payments made for last 5 years)

Say for example 250k (value) minus 170k(200k minus mortgage payments) Or

Answer b.. Or is it just say example over 35 year mortgage I have to pay back 400k, so it it value of home minus 400k (taking off anything I paid in mortgage payments)

So examples 250k minus 370k (400 minus 30k paid in mortgage payments

 

[Premos]

It's the value of your house less what is left to pay on your mortgage. What is left to pay is not equal to your initial mortgage less all your repayment as you pay interest.

 

[huskerdu]

It’s very simple- the amount of money you would have if you sold your home after you pay off your mortgage .

Selling price - current amount remaining on the Mortgage