How do you find out how much equity you have in your home? Also, what if your property value has gone up both through renovations and an increase in values in general in the area, how do you get the mortgage co to recognize this? My tax assesed value has doubled, I know that it is not necessarily a true value of a home, but does it mean anything to a mortgage co, or would a professional appraisal have to be done?


Is the principle I've paid off so far automatically count as equity?

Your equity is simply the market value of the property minus the portion "owed" to others - that is the outstanding principal on your mortgage(s) and/or home equity loan(s). As you pay off the principal on your mortgage your equity goes up (assuming the market value isn't decreasing at a faster rate). So, first step in determining your equity is to estimate the market value - as you note this is affected by local market conditions and the features of the house. You may have a good idea of how property values have changed from the sales history of comparable properties in your area. If you're looking to establish a home equity loan or 2nd mortgage based on your equity, talk to the loan officer to ask whether they require an appraisal to verify the market value of the home. In general they do, and they will arrange for the appraisal themselves (and charge you for it) - you don't need to arrange it yourself.