Figuring out how much equity you have in your home is sometimes the determining factor in whether you're ready to purchase your next home.

More often than not, there's only a number of reasons you're looking to purchase your next home...

• You've outgrown your current home and need something bigger (which most likely means something that will cost more than you originally spent on your first home).
• You're relocating to a new area for work, family, or a change in lifestyle.
• You're downsizing, maybe later in life, as you prepare for retirement.

If you're looking for a larger home or even relocating to a new area (maybe a more costly area than you currently live in), knowing how much equity you have in your home is important. Your home equity is the difference between the appraised value of your home and your current mortgage balance. The more equity you have, the more options you'll have.

There comes a time in everyone’s life when you start to think about retirement. With that comes certain decisions to make. Deciding how to fill your newfound free time may be an easy one to figure out, but some of the things that may be running through your mind right now are a little more complicated. Things like…

• How do I maintain the same lifestyle I’m accustomed to without that regular paycheck?
• Will I miss the day-to-day tasks associated with working?
• Is my home too large, my bills related to it too hefty, now that I’m ready for the next stage in life?

You've decided to sell your home, and the big question you've been eager to have answered is, "How much money am I going to make on the sale of my home?" But actually, the first question you should ask is, "How much do I really owe on my current home?"

Many people think the amount shown on their monthly mortgage statement provides enough information. However, while this is in the general range, it does not show the actual payoff amount because of the way interest on mortgage loans is calculated and charged.