What's Home Equity and How Do You Build It?
Posted by Tamara Williams on
What's Home Equity and How Do You Build It?
Home equity is one of the most powerful financial tools for homeowners. Whether you’re a first-time buyer or have been in your home for years, understanding how home equity works can help you make smart financial decisions. Let’s break down what home equity is, why it matters, and how to build it over time.
What Is Home Equity?
Home equity is the portion of your home that you truly “own”—it’s the difference between the current market value of your home and what you still owe on your mortgage. For example, if your home is worth $300,000 and you still owe $200,000 on your mortgage, your equity is $100,000.
Think of home equity as an asset. Over time, as you pay down your mortgage and (hopefully) your…
62 Views, 0 Comments