How do i work out what equity is in my house?

[shower]

I know i should probably go to a financial advisor for this but thought i would try this first. Basically I bought a house for �82500 taking out a mortgage for �74000 of that. Four years on I am looking to move to a house worth �129950, my current house being valued at �120000 ish. My last mortgage statement was about �69950 so how do i work out what equity is in my house and what i can put down on a new one?

[vehelpfulguy]

The equity in the house is what you own after mortgage and other bills are paid off.

So your house is worth120,000 and you owe 70,000 on the mortgage so your equity is about 50,000.

You can put all the 50,000 down on the new one, or less if you want. Of course the less you put down the more your mortgage is going to be.

It is going to cost you money to move so you have to allow for that so if you have no "spare" money you may want to put say 40,000 down and use the 10,000 to pay for the move

[vehelpfulguy]

Forgot to add, your current house is valued at 120,000 but you may not get that when you sell it..

If you get only 115,000 your equity is 5,000 less, so 45,000

If you only get 110,000 your equity is 10,000 less, so 40,000

[shower]

Thanks vehelpful guy so does that mean that basically I can afford the �129950 price fairly comfortably ie. 70000 + 50000 giving 120000 leaving just the 9950 to sort?

[CheekyChops]

It means that you have 50k to put down leaving you to get a mortgage for the rest i.e 80k.

Your previous mortage of 70k is repaid when you sell your current house.

[erimus1]

Subtract any encombarances from the value of the property - this leaves you the equity value.