Want to know something important you probably don’t check nearly as often as you should? It’s the value of your home.
Your house is likely the biggest financial asset you own. And if you’ve lived in it for a few years or more, chances are it’s been quietly building wealth for you in the background – even if you haven’t been tracking it. You might be surprised at just how much it’s grown, even as the market has shifted recently.
What Is Home Equity?
That hidden wealth in your home is called equity. It’s the difference between what your house is worth today and what you still owe on your mortgage. Your equity grows over time as home values rise and as you pay down your loan.
For example, if your house is now worth $500,000 and you still owe $200,000 on your mortgage, you have $300,000 in equity. That’s right in line with the national average—according to Cotality, the typical homeowner with a mortgage has about $302,000 in equity.
Why You Probably Have More Than You Think
There are two key reasons many homeowners have near-record amounts of equity right now:
1. Significant Home Price Growth
According to the Federal Housing Finance Agency (FHFA), home prices have climbed by nearly 54% nationwide over the last five years. That means your house is likely worth much more now than when you first bought it. Even if prices are stabilizing or softening in certain markets, long-term homeowners often have built enough equity to come out ahead when selling.
2. Longer Homeownership Tenure
Data from the National Association of Realtors (NAR) shows the average homeowner now stays in their home for about 10 years. Over that decade, you’ve built equity not only through price appreciation but also by consistently making mortgage payments. The financial side of homeownership is a long game, and most homeowners are winning.
In fact, NAR reports:
“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
What Could You Actually Do with That Equity?
Equity isn’t just a number on paper—it’s a powerful financial tool. Depending on your goals, you could:
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Use it to cover the down payment on your next home, or even buy all cash.
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Renovate your current house to better fit your lifestyle, potentially adding more value in the process.
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Fund the business you’ve always wanted to start, using equity to cover startup costs and growth investments.
Your equity can unlock opportunities you may not have thought possible.
Bottom Line
Chances are, your house is worth much more than you realize. If you’re curious about your current equity, connect with a trusted local agent who can help you run the numbers. Understanding what you have now will give you clarity on your next steps.
Start today by connecting with The Ace Estate Team for an in-depth home value assessment and personalized guidance.
