Equity is the net value of the home minus the mortgage. So do not subtract the debt (aka mortgage) from equity to determine value. Either use the purchase pric

Equity is the net value of the home minus the mortgage. So do not subtract the debt (aka mortgage) from equity to determine value. Either use the purchase price or appraisal as an estimate for what you'll be able to sell the house for. (It's often wise to decrease this number, as you can lose roughly 10% of the value in further transaction costs when you sell.)