What is home equity and how can it help you?
As you pay down your mortgage and home values rise, you build equity—the part you truly own. You can typically borrow up to 80%-85% of your home’s value, minus what you still owe on your loan.
Upgrade your home
Tackle repairs or start the renovation you’ve been considering—all while potentially adding long-term value.
Consolidate debt
Roll high-interest balances into one simple payment to help you save on interest and improve financial health.
Cover big expenses
Use equity for home repairs, ongoing needs or surprise costs—often at a lower rate than other borrowing options.
How you build home equity over time
You can build home equity in several ways, including:
Paying down your mortgage principal
Each payment typically reduces a portion of the loan balance, gradually increasing the share of the home you own. There’s also potential home value appreciation. If property values rise in your area, your home may be worth more than when you purchased it, which can increase your equity.
Making extra principal payments
Paying more than the required mortgage payment can help reduce your loan balance faster.
Completing home improvements
Certain renovations and upgrades may increase your home’s value, which could help grow your equity.
Discover ways to access equity
When you need funds, Citi gives you many options.
Connect with a Citi SpecialistSee how equity options stack up
Use these tools to compare your borrowing options and make sure your finances are ready for the next step.
Estimate your HELOC payment
The 10-year draw period includes payments that cover interest only. Principal and interest payments begin during the 20-year repayment period. Both estimated payment amounts are based on your variable interest rate of 7% APR.
Your results
Based on your desired line amount of $0, here are some estimated monthly payments to compare:
Principal & Interest HELOC
The 10-year draw period and 20-year repayment period estimated payments include principal and interest, and are based on a variable interest rate of 0% APR.
Interest-only HELOC
The 10-year draw period includes payments that cover interest only. Principal and interest payments begin during the 20-year repayment period. Both estimated payment amounts are based on a variable interest rate of 0% APR.
Get help weighing your equity options
Let's find the best fit for your budget and how you plan to use the funds.
Thinking about refinancing to a new rate and term?
See how refinancing can help you lower payments, shorten your loan term or get a lump sum of cash.
Home equity FAQs
Home equity is calculated by subtracting your remaining mortgage balance from your home's current market value.
Yes, many homeowners access equity through products such as a home equity loan or a home equity line of credit (HELOC).
Many lenders require you to maintain at least 15%–20% equity in your home after borrowing, though requirements vary by lender.
Refinancing can change your equity depending on the new loan amount, fees rolled into the loan and whether you take cash out.
Your down payment contributes to your initial home equity, but equity can grow over time as you pay down your mortgage and as property values increase.