Even though home prices have moderated over the last year, many homeowners still have an incredible amount of equity. But what is equity? In the simplest terms, equity is the difference between the market value of your home and the amount you owe on your mortgage.

How Equity Grows

Your equity grows over time in two ways:

  • Price appreciation: As the value of your home increases, so does your equity.
  • Paying down your mortgage: As you make monthly mortgage payments, you gradually reduce the amount you owe, which increases your equity.

How You Can Use Your Equity

There are many ways you can use your equity, including:

  • Making a down payment on a new home: If you're planning to buy a new home, you can use your equity to make a down payment. This will reduce your monthly mortgage payments and make it easier to qualify for a loan.
  • Paying off debt: You can use your equity to pay off other debts, such as credit card debt or student loans. This will free up money each month that you can use to save or invest.
  • Making home improvements: You can use your equity to make home improvements, such as adding a new bathroom or kitchen. This can increase the value of your home and make it more enjoyable to live in.
  • Taking out a home equity loan or line of credit: You can use a home equity loan or line of credit to borrow money against the equity in your home. This money can be used for anything you want, such as consolidating debt, paying for college, or starting a business.

How to Get an Estimate of Your Equity

To get an estimate of your equity, you can use a home equity calculator. These calculators are available online and can give you a quick and easy estimate of how much equity you have.

How a Real Estate Agent Can Help

If you're considering using your equity for any reason, it's a good idea to talk to a real estate agent. A real estate agent can help you understand the value of your home, get an estimate of your equity, and make the most of your equity.

Contact Us Today

If you're interested in learning more about how you can use your equity, contact us today. We'll be happy to answer any questions you have and help you make the most of your equity.