What is Home Equity? The Value That Matters When You Refinance

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Home equity represents what your home is worth, based on a difference between your home’s value and the amount you still owe to your mortgage lender.

Refinancing your home is a smart option because it allows you to get a better interest term and rate. But how much equity do you need to refinance a mortgage loan, and what is it?

What does this number mean

Home equity simply refers to the difference between the value of your home and the remaining balance on your mortgage or mortgages. Naturally, since home values fluctuate, your home equity changes according to the appraised value of your home. In addition, as you make mortgage payments and pay off your loan, you are increasing your home equity.

For example, if your home value is currently $200,000 and you have paid off $20,000, you have 10% in home equity. To calculate your home equity, use this equation: (amount you have paid off ÷ current home value) X 100 = equity. So, using the numbers from the example above: (20,000 ÷ 200,000) X 100 = 10% equity.

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The New Rules on Tapping Home Equity Today—and Some Common Mistakes To Avoid

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Homeowners across the country are sitting on a record amount of home equity.

Home equity refers to the difference between the current value of a home and how much is still owed on the mortgage. Therefore, if you have a house worth $400,000 and you’ve paid $100,000 toward your mortgage, your equity is equal to 25%.

As a share of total real estate value in the country, home equity has risen along with home prices to currently hover at 70.5%—its highest level since 1984. To put that number in perspective, 10 years ago, in 2012, home equity hovered at just 46%.

“For over a decade, home prices have climbed consistently, with an acceleration to a double-digit pace over the most recent two years,” notes Realtor.com® Chief Economist Danielle Hale. This, in turn, has helped push the total value of owner-occupied real estate in the United States to a new high of $41.2 trillion.

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You Won’t Believe How This $3.4M Swiss Chalet-Style Craftsman Survived the Wrecking Ball

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A 1913 Swiss chalet–style Craftsman in Long Beach, CA, comes with a heckuva story.

The 4,809-square-foot home with four bedrooms and four baths is on the market for $3,495,000 with Loree Scarborough of Compass.

That’s the storybook ending. How it got to that point is hard to believe. The tale involves saving the home from the wrecking ball, relocating it, and then renovating it.

Saved not razed

First, the seller snapped up this home at no cost—that’s right, free—in 1989. While “free” is certainly a deal, this home came with quite a catch—and a cost.








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Gwyneth Paltrow’s Childhood Home in Santa Monica Now on the Market for $17.5M

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Oscar winner and wellness entrepreneur Gwyneth Paltrow got her start in this little ol’ mansion in Santa Monica, CA—and it can be yours if you’ve got $17.5 million.

Yup, Paltrow‘s parents, Bruce Paltrow and Blythe Danner, snapped up this massive property in 1976. The future Goop founder was just 4.

The Paltrow clan called it home until 2008, when it was sold to Jerome Dahan, co-founder of the denim brands Citizens of Humanity and 7 for All Mankind.

As would befit this legendary Hollywood family, the home is spacious at 6,900 square feet and ultraplush with six bedrooms and  6.5 baths.







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Rooftop Chess Set a Clever Gambit for $3.5M California Midcentury Modern Home

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A midcentury modern masterpiece with a giant-size, rooftop chess set in Pasadena, CA, has captured lots of attention. After less than a month on the market, the home has a contingent offer.

Whether you’re a fan of the Netflix miniseries “The Queen’s Gambit” or you think it might be fun to try your game moves outdoors, this spacious beauty comes with an eye-catching, outdoor playground.

“The owner always imagined having a rooftop chess set, and her husband gave it to her for her birthday,” says Sharon Verani, who is co-listing the property with Mark Ogden of Sotheby’s International Realty.

Giant-size chess set

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Picture-Perfect Louisiana Home for Sale Has a Surprise Brewing Inside

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Beware the witches of Louisiana!

An unassuming house in Baton Rouge is creeping out potential buyers with its bewitched staging.

Like the New Hampshire home listing featuring “Halloween” movie villain Michael Myers and a Kentucky Victorian‘s frighteningly fabulous photos, this haunting home is casting a spell for Halloween.

The exterior of this newly built four-bedroom, 2,588-square-foot dwelling is picture-perfect, looking like something out of a magazine. But the interiors of this $549,900 listing have a surprise brewing.




A witch slouched in a bathtub while another witch floats by in the closet behind
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‘Fixer Upper: The Castle’: Are Chip and Joanna Gaines In Over Their Heads?

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On their new show “Fixer Upper: The Castle,” Chip and Joanna Gaines are quickly learning that making over a historic building is a lot more complicated than making over any old house.

In the latest episode, “Story of Color,” they struggle specifically with how to blend the castle’s old elements with new ones. There are many tough decisions to be made, and—surprise!—Chip and Jo don’t always agree.

Read on to see how these famous flippers figure out what to do, and learn some smart lessons you might be inspired to apply to your own abode, too.

An old exterior can still look new

Before: Chip and Joanna Gaines examine the exterior of the castle.

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castle
castle stone
pink room
pink paint
bathroom
tile
Chip and Jo
wood stains
storage
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Timothee Chalamet’s New Mansion Has an A-List Pedigree, and ‘Selling the OC’ Episode 5 Gets Juicy

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

Between marital strife and a not-so-stellar start to the football season, Tom Brady has a lot on his plate. But the latest real estate news about the superstar quarterback is that his Davis Islands, FL, home is on the market for $12.5 million. We have the scoop on the house, plus details about Brady’s most recent real estate ordeal.

Then, we chat about heartthrob Timothee Chalamet‘s $11 million purchase in Beverly Hills, CA. It’s a gorgeous spread with quite a history of celebrity owners.

Timothee Chalamet’s New Mansion Has an A-List Pedigree, and ‘Selling the OC’ Episode 5 Gets Juicy
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Who’s Making Real Estate Moves on ‘Selling the OC’? Plus, Rihanna Buys Again in Beverly Hills

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

This week we continue our recap of “Selling the OC” with Episode 4, titled “Not So Happy Hour.” While the drama among the agents at the Oppenheim Group is heating up, one agent sells a $3.2 million house and makes her biggest commission to date. Several properties are featured in this episode, including a $4.5 million hillside home in Laguna Beach and a massive Laguna Beach mansion.

Then, we discuss two recent real estate stories of note: Melissa McCarthy‘s purchase of a New York City penthouse (as well as her real estate portfolio) and Rihanna‘s second Beverly Hills buy.

Who’s Making Real Estate Moves on ‘Selling the OC’? Plus, Rihanna Buys Again in Beverly Hills
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Beach Day Drama on ‘Selling the OC’ and the Coolest U.S. Cities With ‘Beyond the Block’ Host Andrew Tyree

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

This week, we continue our recap of “Selling the OC” with Episode 3, “Testing the Waters.” The agents at the Oppenheim Group hustle to get listings and find buyers for a variety of SoCal properties, including a hillside home in Laguna Beach, a 6,000-square-foot mansion in Irvine, and a $21 million estate in Dana Point. But the drama really heats up when the agents hit the beach, pop some Champagne, and reveal their true feelings for one another.

Then, we chat with Andrew Tyree, host of “Beyond the Block” on Tastemade, and Joey Lucas, the showrunner. The show is currently in its third season, and Tyree and Lucas stop by “House Party” to give us the scoop on what it’s like producing a TV show that’s “part travel, part real estate.” Each episode, Tyree guides homebuyers through potential neighborhoods in cities across the country so they can find not only their dream house but also their dream locale.

Beach Day Drama on ‘Selling the OC’ and the Coolest U.S. Cities With ‘Beyond the Block’ Host Andrew Tyree
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Things Get Awkward on ‘Selling the OC,’ and Jennifer Lawrence Wants $10.5M for Her NYC Loft

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

This week we continue our recap of “Selling the OC.” On Episode 2, we see some major rifts forming: Kayla Cardona vs. Alexandra Rose. Gio Helou vs. Alex Hall. Everyone vs. the Alexandras.

In addition to the awkward confrontations and over-the-top drama, we also see three Southern California properties featured on this episode: a $28 million mansion in Newport Beach, a waterfront getaway in Laguna Beach, and a family-friendly house in Laguna Niguel.

Things Get Awkward on ‘Selling the OC,’ and Jennifer Lawrence Wants $10.5M for Her NYC Loft
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Tell Us About Your Lifestyle and We’ll Help You Choose the Perfect Internet for Your New Home

The post Tell Us About Your Lifestyle and We’ll Help You Choose the Perfect Internet for Your New Home appeared first on Real Estate News & Insights | realtor.com®.

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Attention Movers: Optimum Is Here to Keep You Connected—Here’s What You Need to Know

When you’re searching for—and ultimately settling into—a new house, it’s all about prioritizing the to-do list. And in these days of do-it-all-from-home, one of the very first steps for movers is to install ultra-fast, reliable internet and TV services. To get up and running as soon as possible, you can look to Optimum.

Moving or searching for a new internet or television provider? Now is a great time to explore all that Optimum has to offer. With Optimum set up in your new home, you can kick back from a full day of moving and enjoy your favorite TV channels and more.

Moving into a new home is an opportunity for a fresh start, and that includes your internet and TV service providers. Whether you are moving from a region with different providers or are searching for better service, Optimum is well worth your consideration—the company strives to make moving simple. (When it comes to setting up internet and TV service, at least! Hanging up pictures and arranging furniture is up to you.)

As any mover knows, being able to unwind and recharge is essential—and Optimum can help make that happen ASAP. With free installation available when you order online and a streamlined process for getting you connected to the internet, you can have reliable, fast, and whole-home WiFi coverage set up before you even find the box with your silverware.

With more dining room tables serving as remote offices these days, it’s essential to get back online with high-speed, reliable internet before your next workday. Optimum offers award-winning internet services with speeds up to 1 Gig, 99.9% reliability, no data caps, built-in internet security and Smart WiFi 6 that helps your connection reach the far corners of the house.

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What Realtors Really Mean When They Say Cozy

If you’ve spent any time scrolling through real estate listings in search of that “hidden gem,” chances are you’ve noticed terms like “cozy” or “charming” popping up again and again. If you’ve taken your search a step further and done an in-person walk through, you may have been disappointed by the reality.

The truth? Listing agents sometimes use the term cozy and other listing lingo to distract buyers from unwanted features, whether that’s a tiny footprint, cramped bedrooms, or outdated features. But that’s not always the case. Sometimes, cozy means what it sounds like: a comfy space that’s just right for all the R&R you can dream of. The important thing is to be able to tell the difference.

We asked Realtors what they really mean when they say cozy, and how to see beyond the lingo and make the best possible decision on a home.

Cozy

One of the most common real estate terms out there is cozy—and as you can guess, it’s often a euphemism for “short on square footage.” “You rarely hear someone say a large room is cozy, so this can tend to be an optimistic and affectionate way to focus on the endearing qualities and potential of a smaller room or space,” says Arizona-based Realtor John Gluch.

But it’s not always about space (or lack thereof). Sometimes, Gluch says, the term can actually refer to positive elements, like a home’s ambiance. Maybe the house has features that make it feel especially conducive to relaxation, such as a fireplace or mood lighting. A Realtor may also call a home cozy to help potential buyers visualize themselves doing something, well, cozy. “This usually means comfy and inviting furniture or architecture in a small nook, alcove, or room that invites intimate conversations, reading, or just looking out the window,” he says.

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Is It Worth It: Adding an Accessory Dwelling Unit

Some of the biggest decisions about homeownership come after you’ve closed the deal. Should you renovate that dated kitchen? Will adding an additional bathroom increase the value of your home? But also: How many place settings do you actually need? Should you ever buy anything at full-price? And what’s the deal with renting furniture? Is It Worth It addresses your questions big and small.

The ADU, or accessory dwelling unit, is an increasingly popular solution to a variety of real estate problems. Need a separate space for your studio or home office? A flat for your in-laws or adult kids to live in, nearby but under a separate roof? A rental unit to supplement your income? An ADU may be the answer. Relatively affordable, extremely adaptable, these mini-homes are popping up everywhere — especially in California, which has aggressively changed their laws on ADUs to help alleviate housing shortages, and especially since COVID, which transformed our work-from-home needs.

But, is adding an ADU actually worth it? As with most things, the answer is, it depends. We talked to real estate agents and homeowners to get their insights. Here’s what to know if you’re thinking of adding an accessory dwelling unit to your home.

But First: What Is an ADU?

If you’re wondering what exactly an ADU is, you’re not alone; few buyers and many real estate agents, especially those who don’t specialize in investment purchases, know the term. But you probably have heard the term “mother-in-law suite” or, perhaps, “granny flat.” They are one and the same. According to the U.S. Department of Housing and Urban Development, ADUs are “additional living quarters on single-family lots that are independent of the primary dwelling unit.” They can be attached or detached and may have separate kitchens and bathrooms, but they cannot be sold separately. They’ve been around since the early 20th century, and they’ve been on the rise in the last few years.

So: Is Adding an ADU Worth It?

Here, we look at the pros and cons of adding an ADU to your home.

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Before & After: A Guest Bedroom Makeover on a Just-Moved-In Budget

Melanie Gnau and her husband spent 5 years living in an Airstream in order to save up for their first home, a fixer-upper in Asheville, North Carolina. They used the proceeds from their Airstream to fund the renovations, which were extensive. They spent most of their funds on a complete overhaul of their home before they officially moved in. “When we bought our home, it needed new electrical and the drywall was in bad shape, so we decided to tear it all out and replace it. We did all of the demo work ourselves, but hired out the electrical and the drywall installation.” They also refinished the floors and added new doors and trim throughout the home.

When they were finished, their remaining budget was very (very) tight – which meant they had to get creative when it came to finally fixing up their guest room. Here’s how they did it, how much it cost, and their best advice for making the most of your just-moved-in budget.

What was your vision for the guest room?

“Guest room” is kind of a loose term. We use it to store stuff for our business, pack orders and take pictures. So, it needed it to be light and bright, have good storage, and function as a room for the rare guest.

Originally, when I had been trying to work in my husband’s office, we had a dresser in the room, but I really like to be alone to work and so does he. So I switched out the dresser for a “desk” – two thrifted filing cabinets with a piece of wood on top.

After living with the guest bedroom for a while, Melanie and her husband decided to replace the dresser with a DIY desk so that they could each have a dedicated working space in their home.

How do you convert the room from office to bedroom?

When I turn this room into a guest bedroom, I change out the linens and leave out my fluffiest towels for my guests. I realize that this might not be as comfortable as a hotel, but I try to make it welcoming. I light a candle and if it’s in season, I’ll cut some flowers from my garden. I’ll also clear my workstuff off the desk so they can have space to unpack or set things.

Dog sitting on bed with colorful throw blanket
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7 Quick & Easy Cleaning Tasks You Can Do While Your Coffee Brews

Whether you’re moving into a new home, getting ready to sell an existing home, or just staying put, getting (and keeping) your home neat and tidy is key to feeling calm and cozy for the fall season. After all, it’s hard to truly relax in a space that feels dirty and disheveled. The problem: Achieving a relaxing, comfy home takes work–and there’s nothing calm and cozy about sweeping, scrubbing, or sanitizing. Unless, that is, you intentionally make it that way.

One way to make the work feel, well, less like work: Incorporate a chore into something you’re already doing—aka habit stacking—to make your cleaning routine stick. We vote for picking something to clean while you wait for your coffee (or tea) to brew. Three to five minutes is the perfect chunk of time to achieve something meaningful without getting exhausted. Plus, you can do it in your pajamas.

Exactly how long you have to clean depends on your go-to brewing method. Regardless, you’ll finish with a sense of pride and a built-in reward: your morning cup. Need ideas? We’ve got you covered. Ahead, 7 things you can clean when you’re waiting for your coffee to brew every morning.

Clean your microwave

A microwave is essential for your next Netflix binge session, but a dirty microwave can put a real damper on your Rings of Power marathon. Luckily, as long as you have the right tools on hand, you can take your microwave from splattered to sparkling in just a few minutes. Here’s how: Fill a microwave-safe bowl with two cups of water and two cups of distilled white vinegar, and cook it for three minutes. Let the steam work its magic for a minute before opening the door, then wipe the inside with a microfiber cloth. Along with neutralizing smells, the vinegar steam will cut through grease and grime, making it easy-peasy to wipe down–so it’s 100% ready for movie night.

Spruce up your sofas

Your couches, sofas, and loveseats are supposed to be one of the most inviting places in your home. If they’re feeling less-than-inviting, take a few minutes to straighten up the back and seat cushions, fluff your throw pillows and put them where they belong, and fold any blankets. They’ll feel like new when it’s time to lounge!

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Drama From the ‘Selling the OC’ Premiere, and the Story Behind Derek Jeter’s Tampa Mansion

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

We’re back with a jampacked episode!

This week, Realtor.com celebrity news writer Claudine Zap joins Natalie to dive into the premiere of “Selling the OC,” the buzzy spinoff of the real estate reality show “Selling Sunset.”

Drama From the ‘Selling the OC’ Premiere, and the Story Behind Derek Jeter’s Tampa Mansion
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Shea and Syd McGee Share Their Favorite Moments From Season 3 of ‘Dream Home Makeover’

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

On this episode of “House Party,” we’re thrilled to share our interview with Shea and Syd McGee, the stars of Netflix’s “Dream Home Makeover” and owners of the successful and aspirational interior design company Studio McGee. With the recent premiere of the third season of their popular Netflix show, we couldn’t wait to chat with them about their favorite moments, best advice for anyone struggling to find their design style, and more.

After our interview, we crown this week’s celebrity real estate winner and loser.

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Chip and Jo’s Emmy Nomination, a ‘Selling Sunset’ Baby, and a ‘Battle on the Beach’ Winner

“House Party” is the official Realtor.com® podcast about the overlapping worlds of home and pop culture, hosted by Rachel Stults and Natalie Way. Click the player above to hear our take on this week’s hot topics.

We were pretty shocked to hear that Chip and Joanna Gaines had never won an Emmy for their juggernaut renovation show “Fixer Upper.” Because they were never producers on that show, they were never eligible.

But now, as owners of Magnolia Network and executive producers of “Fixer Upper: Welcome Home,” Chip and Jo have the opportunity to win gold. Last week, we learned that “Fixer Upper: Welcome Home” was nominated for Outstanding Structured Reality Program. The Emmys are scheduled for Sept. 12, and we’ll be waiting with bated breath to see if they come out on top.

Chip and Jo’s Emmy Nomination, a ‘Selling Sunset’ Baby, and a ‘Battle on the Beach’ Winner
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