As you build equity in your home. Calculate your equity by:

• Find out how much your house is worth in today’s market (not how much you paid for it)
• Find out how much you currently owe on your mortgage
• Subtract what you owe on your mortgage from the current value of your house.

Refinancing allows you to borrow up to 80% of the value of your home minus what you still owe on it. For example, if your property is currently worth $500,000, you may borrow up to $400,000 (80 percent of the value)