You probably check your bank account pretty often. But when was the last time you thought about how much equity you’ve built in your home?
For most people, their home is the largest financial asset they own. And if you’ve lived in yours for a few years (or more), you’ve likely built more wealth than you think — quietly, in the background.
Let’s talk about that hidden value: home equity.
What is home equity?
Home equity is the difference between what your house is worth today and what you still owe on your mortgage. It builds over time as your home value increases and as you pay down your loan each month.
Simple example:
If your home is now worth $500,000 and you still owe $200,000, you’ve built $300,000 in equity — and it’s all yours.
Why you probably have more equity than you think
1. Home prices have increased significantly
According to the Federal Housing Finance Agency (FHFA), home prices have risen more than 57% in the last five years nationwide.
If you bought your home a few years ago, there’s a good chance it’s worth a lot more now — even without major upgrades.
2. Homeowners are staying put longer
Data from the National Association of Realtors (NAR) shows that the average homeowner now stays in their home for about 10 years.
That’s more than enough time to build serious equity just by making your monthly payments and benefiting from home appreciation.
According to NAR:
“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
What can you do with your equity?
Your home equity isn’t just a number — it’s a tool. Here’s how you can put it to work:
Buy your next home
Use your equity as a down payment for a bigger, better-located, or more modern home. In some cases, you could even buy your next place in cash.
Renovate your current home
Upgrade your kitchen, add an office, or improve your outdoor space. Smart renovations can boost your comfort now — and your home’s resale value later.
Start a business
Your equity could be the capital you need to launch the business you’ve been dreaming of — whether that means buying equipment, paying for branding, or covering startup costs.
Invest in real estate
Many homeowners use their equity to buy a second property — either as a vacation home or a rental that generates passive income.
What should you do next?
You don’t have to sell your house just because you’ve gained equity — but knowing your numbers empowers you to make better decisions.
Thinking about moving or downsizing?
Want to reinvest in your property or use your equity elsewhere?
Just curious what your home is worth in today’s market?
Talk to a real estate agent you trust. They can help you assess your current value, walk you through your options, and help you decide what makes the most sense for your goals.
Conclusion
Your home may be your greatest source of untapped wealth. If you’ve been in your home for a few years, you could be sitting on thousands (or hundreds of thousands) of dollars in equity — and now might be the time to use it.
What would you do with $200,000 in equity?
Let’s connect and explore how to turn your home’s value into your next big move.
