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How Much Home Equity Have You Built? The Answer Might Surprise You



Have you ever stopped to consider how much wealth you’ve accumulated simply by being a homeowner? As property values continue to rise, so does your net worth. If you’ve owned your home for several years (or longer), chances are you’re sitting on a significant amount of equity—possibly more than you realize.

What Is Home Equity? Home equity is the difference between your home’s market value and the remaining balance on your mortgage. For example, if your home is valued at $500,000 and you owe $200,000 on your loan, you have $300,000 in equity. In essence, it’s the wealth you’ve built through homeownership. Right now, homeowners nationwide are experiencing record-high levels of equity.

According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has $319,000 in home equity.

Why Have Homeowners Gained So Much Equity? Two main factors have driven the significant growth in home equity:

  1. Significant Home Price Growth
    • Home values have appreciated substantially over the years, increasing the equity homeowners accumulate.

  2. Longer Tenure in Homes
    • Many homeowners are staying in their properties longer, benefiting from years of steady home value growth. The longer you’ve owned your home, the more its value has likely appreciated, boosting your equity.

The Benefits of Home Equity What can you do with this growing wealth? Your home equity can be a financial game-changer, opening doors to exciting opportunities for your future. Here are some possibilities:

  • Moving to Your Next Home
    • Use your equity to cover the down payment on your next home. In some cases, it might even enable you to purchase your next property outright with cash.

  • Financing Home Improvements
    • Thinking about upgrading your kitchen, adding a home office, or making other renovations? Tap into your equity to fund these projects, increasing your home’s value and enhancing your living experience.

  • Starting a Business
    • Dreaming of launching your own business? Your equity could be the financial foundation you need for startup costs, equipment, or marketing efforts.

Bottom Line
Whether you’re planning to sell, make upgrades, or explore other financial opportunities, your home equity is a powerful resource. Curious about how much equity you’ve built or how to use it to achieve your goals? Connect with a local real estate expert to uncover the possibilities and make the most of your homeownership journey.

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