You Might Be Sitting on More Home Equity Than You Think

You bought your home a few years ago — maybe more. At the time, you just needed a place to live. You weren’t thinking about building wealth or tapping into financial opportunities.

Fast forward to now, and things feel different. Prices have gone up. You keep hearing about the market. Maybe friends have sold their homes for way more than they paid. And suddenly, you’re wondering:

“How much is my home actually worth now? And if it’s gone up, what does that mean for me?”

Here’s the short answer: You might have built up a surprising amount of equity — and that equity could open doors you didn’t realise you had.

What Is Home Equity (And Why Does It Matter)?

Home equity is the difference between your home’s current value and what you still owe on your mortgage.

For example, if your home is worth $500,000 and your mortgage balance is $200,000, you have $300,000 in equity.

It’s money you’ve built just by paying your mortgage and living in your home as its value appreciates. And according to Intercontinental Exchange (ICE), the average homeowner with a mortgage now has $319,000 of equity in their home, of which $207,000 is tappable. That’s not pocket change — that’s serious buying power.

Why You’ve Likely Gained More Equity Than You Think

Even if you haven’t made extra mortgage payments or major upgrades, there are two big reasons your equity has probably grown over time:

1. Home Prices Have Risen Sharply

Over the past five years, U.S. home prices have climbed by 57.4%, according to the Federal Housing Finance Agency (FHFA). That means the value of your home has likely increased significantly since you bought it — especially if you purchased before or during the early part of that window.

2. You’ve Stayed in Your Home Longer

The longer you own your home, the more time it has to appreciate in value. According to the National Association of Realtors (NAR), homeowners are staying in their homes for an average of 10 years — and that has major financial advantages.

In fact, NAR reports that over the past decade, the typical homeowner has gained about $201,600 in wealth just from price appreciation.

What Can You Actually Do With Your Home Equity?

This is where it gets exciting. Your equity isn’t locked away. It can be used to fuel your next financial move — if you want it to.

Here are four ways homeowners are putting their equity to work:

1. Move Into Your Next Home

If your current home no longer fits your lifestyle or goals, your equity could help fund the move. It might cover a large chunk — or all — of the down payment on your next home. In some cases, homeowners are even able to buy their next home with all cash using their equity.

2. Renovate and Improve

Dreaming of a kitchen upgrade, new flooring, or even a home office? Your equity can help finance those improvements — which can both increase your home’s value and make it more enjoyable to live in.

3. Launch a Business

Home equity has become a common tool for people ready to strike out on their own. Whether you need capital to start a business, purchase equipment, or invest in marketing, your home might be the financial stepping stone you need.

4. Consolidate Debt or Build a Financial Cushion

Some homeowners use equity to pay down high-interest debt or to build an emergency fund. Depending on how you use it, this can lower your overall financial stress and improve your monthly cash flow.

Should You Be Cautious About Using It?

Yes — anytime you’re borrowing against your home, you need to be thoughtful. Equity is a valuable asset, and using it should always support your bigger goals, not short-term spending.

If you're considering a home equity loan or line of credit, make sure you understand the terms and risks. But used strategically, your equity can be one of the most powerful financial tools you have.

So, How Much Equity Do You Actually Have?

Here’s the thing — unless you’ve had a recent home valuation or talked to a real estate professional, you’re likely estimating.

But you don’t have to guess.

The best way to get a clear, up-to-date picture is by requesting a Comparative Market Analysis (CMA). It’s quick, it’s free, and it shows you exactly what your home is worth in today’s market — and by extension, how much equity you’re sitting on.

What's next?

You might not think of your home as an investment — but it’s been building wealth behind the scenes. If you’ve owned it for a few years or more, chances are you’ve gained far more equity than you realise.

The question isn’t just how much you have — it’s how you want to use it.

Want to know how much equity you’ve built up? Click below to get an instant CMA now.