How to Find Out Your Home's Value

Are you interested in discovering what your home is worth? An appraisal and comparative market analysis are two distinct ways in determining the value of your home. Appraisal calculations are calculated by a certified appraiser and amounts will vary depending upon the economy and other factors. In order to get the approximate value of your home, the appraiser takes into consideration the following:

Your home's square footage
Construction quality
Home design
Your home's floor plan
The neighborhood your home is located in
Availability of transportation, shopping, and schools
Lot size, topography, view, and landscaping

How do I find out the approximate value of my home?

A comparative market analysis is another way of determining the worth of your home. A comparative market analysis is more of an informal estimate of your home's market value. A real estate agent makes an analysis based primarily on sales of comparable homes in the neighborhood. Compared to home appraisals, which typically cost between $200 and $300, a comparative market analysis may be obtained at no cost. Keep in mind that a comparative market analysis is an estimate and the ending amount may be different than your appraisal.

What's the difference between the estimated value of my home and my house worth?

A home’s estimated value is usually determined by an appraisal or a comparative market analysis and differs from a home’s worth. A home’s worth is what buyers in the market are willing to pay for a home.

Can I find the value of my home through the internet?

Use our home value calculator to get home value estimates. There are also a number of other websites and services that can crunch the numbers and calculate your home's estimated value.

While these calculators rely on recent home sales and refinance transactions in your area to produce a value estimate, an appraisal or comparative market analysis may still provide you with the most accurate assessment.

Home Equity Loans vs. Cash-Out Refinance

Equity is the difference between your home’s value and your mortgage. For instance, if you have a home that’s worth $300,000 and your mortgage is $250,000 that means you have $50,000 of equity in your home, which is like having $50,000 in a savings account. A cash–out refinance allows you to access that equity. So if you need $10,000, you can refinance your mortgage so that you owe $260,000 and the lender then gives you $10,000 in cash at closing.

With a home equity loan, you keep your original mortgage and take out a second mortgage for the amount of equity you are tapping into. Unlike a cash-out refinance, a home equity loan is a whole separate mortgage based on the amount of equity you are tapping into.

Since every homeowner's situation differs, your best option will depend on your specific circumstances. ZeroPoint Lending has several options to choose from. When you compare home equity loans and cash-out refinance, there are four major things you should consider in order to determine what's best for you:

Speed
Speed could be a crucial factor for some homeowners. How fast do you need the money? Home equity loans close significantly faster than a refinance, in some cases in as little as five or six days.

Cost
Home equity loans typically require minimal costs and fees. Refinancing, on the other hand, may carry higher loan fees and possibly points.

Rate
Since a home equity loan is a second mortgage, it usually has a higher rate compared to a cash-out refinance. If you already have a great rate on your mortgage, it may be a smart idea to get a home equity loan, regardless if it has a higher rate, rather than refinance and lose the low rate you already have on your first mortgage.

Term
Refinancing is usually limited to a 15 or a 30 year term. A home equity loan, in contrast, will offer you more flexibility. This will allow you to take advantage of a shorter term loan which will reduce your overall interest costs.

A ZeroPoint Lending mortgage expert can help you compare a cash–out refinance or a home equity loan. With your own personal mortgage expert to guide you, you'll have no trouble determining which type of loan is right for you.