This is a great quesiton. It really depends on the purchase price you paid for the home and what the market around you is currently supporting. I would suggest getting a local appraiser to pull comparable sales in your neighborhood and see if there is a difference between what they come back with and what you owe against the home. If there is a positive difference in these numbers then yes you do have equity in your home. However, keep in mind that this is one persons opinion on market value of your home, so don't make the mistake of many Americans and over borrow against your home so much that you can not get out of it if you need to sell.