Step 1:

Determine what your home is worth.

Estimate the Fair Market Value of the property that will be used to secure your loan. Looking at recent sales of similar homes in your market would prove helpful as well.
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Step 2:

Calculate the maximum you can owe on your home.

For a standard equity loan or line on a 1-4 family owner occupied residence, multiply the amount in Step 1 by 80% (.80).
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Step 3:

Determine the amount of available equity you may have in your home.

Enter the balance owed on your first mortgage if not being paid off with this request.
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Final Step:

Subtract the amount in Step 3 from the amount calculated in Step 2. This is the approximate amount of equity remaining in your home.
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