Buying Home With Equity -

Home equity is the current market value of your property minus what you still owe on your mortgage. As you pay down your loan or as your home's value increases, your equity grows. You can access this value through three primary methods:

You replace your current mortgage with a new, larger one, and take the difference in cash. This can be strategic if current interest rates are lower than your original mortgage rate. The "Usable Equity" Rule buying home with equity

If your home is worth ₹1 crore and you owe ₹50 lakhs, you have ₹50 lakhs in equity. However, if the lender allows a maximum loan-to-value (LTV) of 80%, they will lend up to ₹80 lakhs total. After paying off your ₹50 lakh mortgage, you have ₹30 lakhs in "usable equity" for your next purchase. Key Benefits and Risks Home equity is the current market value of