The basic benefit of home ownership is shelter.  Another critical benefit is it is an asset and valued based on normal market conditions.

 

• Equity is the value of your property less encumbrances (loans, liens, etc.)

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• Lendable equity is the amount of EQUITY can borrow. 

Most prudent lenders have limitations on what percentage you can borrow.  Typically for the best rates/programs you can’t exceed 80%, however it is not uncommon to see programs where you can borrow ALL of your equity.

 

Many homeowners tap into their lendable equity to fund a variety of personal items.  On some occasions the lender may restrict how you can use your lendable equity but for the most part it belongs to you to do as you choose.