The difference between the appraised value
of your home and the unpaid balance of your current mortgage makes up your home
equity.
You can grow your equity by paying down
your mortgage, but it can also grow on its own if the appraised market value of
your home increases over time.
For example, if your home is worth $350,000
and you still owe $250,000 on your current mortgage, you would have built up
$100,000 in home equity.