<p>The value of the home, I believe, is the market value - what are you likely to be able to sell it for? (Since this is a wishy-washy number, you may want to lowball it a bit, although it is often higher than appraisal unless your community does 100% assessments.) Then the equity in your home is determined by value minus the remaining mortgage balance and anything you owe on the home equity. I believe FAFSA asks for both, although I may be remembering incorrectly.</p>