The Best How To Use Equity To Buy Next Home References. For example, if you own your own home with a value of $850,000, and owe $550,000 on your mortgage, your equity value would be $300,000 ($850,000 minus $550,000). This option would allow you to have a line of credit to use as you wish for the new home.

With this in mind, here’s how sarah can calculate her usable equity: If you consider taking out a home equity loan to purchase a second home, getting approved is easy with alpine credits. You can tap into this equity when you sell your current home and move up to a larger, more expensive one.