How to Build Equity in a Home: 12 Specific Tips
1 min read
Growing equity can benefit you now and in the future, especially when it comes time to sell your house. In this post, we narrow down the general advice and provide clear and specific tips on how to build equity in a home.
We’ll share actionable steps you can take to increase your equity faster.
What is home equity?
Home equity is the portion of your home that you actually own outright, not what’s still owed on your mortgage. It’s the difference between your home’s market value and the remaining balance on your mortgage.
For example, if your home is worth $400,000 and you still owe $250,000 on your mortgage, your equity is $150,000. As you pay down your mortgage and your home value increases, your equity grows.
Home equity is valuable because it represents a significant part of your net worth and can be used for future investments or financial needs, like home improvements or even retirement funds.
