The Wealth You Didn’t Know You Had: Home Equity Explained

Do You Know What Your Home’s Really Worth? You Might Be Sitting on a Goldmine.

Let’s talk about something you probably check less often than your bank account—your home’s value. But here’s the thing: your home is likely your biggest financial asset. And if you’ve owned it for a while, it’s probably been quietly building wealth for you in the background.

So, when’s the last time you had a professional show you how much equity you’ve built?

What Is Home Equity Anyway?
In simple terms, your equity is the difference between what your home is worth and what you still owe on your mortgage. As home values rise and you pay down your loan, your equity grows.

For example: if your home is worth $500,000 and you owe $200,000 on your mortgage, you’ve got $300,000 in equity. That’s real money—and for many, it’s a bigger number than expected.

According to Cotality (formerly CoreLogic), the average homeowner with a mortgage has around $311,000 in equity. That’s not small change.

Why You Likely Have More Equity Than You Think

There are two big reasons:

1. Home Prices Have Soared. The FHFA reports home prices have risen more than 57% in the past five years. If you bought your home even a few years ago, you’ve likely seen a big jump in value.

2. People Are Staying Put Longer. The average homeowner now stays in their home for about 10 years. Over time, that consistent mortgage payment and market appreciation really add up.

In fact, NAR says the typical homeowner has gained $201,600 in wealth just from price appreciation over the last decade.

What Can You Do with That Equity?

Your home’s equity isn’t just a number—it’s a powerful tool. Here’s what you might consider:

• Use it to buy your next home. Your equity can go toward your down payment—or even let you buy your next place in all cash.

• Renovate to better fit your lifestyle. Strategic upgrades can make your home more livable and increase its value.

• Fund your dream business. Equity could help you cover startup costs, expand your side hustle, or chase a long-held dream.

Bottom Line
Chances are, your home is worth more than you realize. Whether you’re curious about your current value or thinking about your next move, let’s talk. I’ll show you how to use your equity to build what’s next.