$\"Do$ \n

Want to know something important you probably don\u2019t have a professional check for you nearly as often as you should? Spoiler alert: it\u2019s the value of your home.<\/p>\n

Because here\u2019s the reality. Your house is likely the biggest financial asset you have. And if you\u2019ve lived in it for a few years or more, chances are it\u2019s been quietly building wealth for you in the background \u2013 even if you haven\u2019t been keeping tabs on it.<\/p>\n

You might be surprised by just how much it\u2019s grown, even as the market has shifted over the past few months.<\/p>\n

What Is Home Equity?<\/strong><\/h4>\n
That hidden wealth in your home is called equity<\/strong>. It\u2019s the difference between what your house is worth today and what you still owe on your mortgage. Your equity grows over time as home values rise and as you make your monthly payments. Here\u2019s an example to help you really understand how the math works.<\/p>\n
Let\u2019s say your house is now worth $500,000, and you have $200,000 left to pay off on your loan. That means you have $300,000 in equity. And that\u2019s right in line with what the typical homeowner has right now.<\/p>\n
According to Cotality, <\/em>the average homeowner with a mortgage has about <\/strong>$302,000<\/strong><\/a> in equity.<\/strong><\/p>\n
Why You Probably Have More Than You Think<\/strong><\/h4>\n
Here are the two main reasons homeowners like you have near record amounts of equity right now:<\/p>\n
1. Significant Home Price Growth.<\/strong> According<\/a> to the Federal Housing Finance Agency <\/em>(FHFA), <\/em>home prices have jumped by nearly 54% nationwide<\/strong> over the last five years (see map below<\/em>):<\/p>\n
$\"a$ <\/a>This means your house is likely worth much more now than when you first bought it, thanks to how much prices have climbed over time. And if you\u2019re worried because you\u2019ve heard prices are flattening or even coming down in some markets, just know if you\u2019ve been in your house for a few years (or more) you very likely have enough equity to sell and still come out ahead.<\/p>\n
2. People Are Living in Their Homes Longer.<\/strong> Data<\/a> from the National Association of Realtors<\/em> (NAR), shows the average homeowner stays in their home for about 10 years now (see graph below<\/em>):<\/p>\n
$\"a$ <\/a>That\u2019s longer than it used to be. And over that decade? You\u2019ve built equity just by making your mortgage payments and riding the wave of rising home values. Because the financial side of homeownership is about playing the long game, not worrying about little ups and downs in the market here and there. And over time, that means you\u2019re winning.<\/p>\n
So, if you\u2019re one of those people who\u2019s been in their home for a bit, here\u2019s how much the behind-the-scenes price growth has helped you out. According<\/a>\u00a0to NAR:<\/p>\n
\u201cOver the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.\u201d<\/em><\/p><\/blockquote>\n
What Could You Actually Do<\/em> with That Equity?<\/strong><\/h4>\n
Your equity isn\u2019t just a number. It\u2019s a tool you can use to unlock your next big move. Depending on your goals, you could:<\/p>\n
\n
Use it to help buy your next home.<\/strong> Your equity could help you cover the down payment on your next home. In some cases, it might even mean you can buy your next house in all cash.<\/li>\n
Renovate your current house to better suit your life now.<\/strong> And, if you\u2019re strategic about your projects, they could add even more value to your home if you do sell later on.<\/li>\n
Start the business you\u2019ve always dreamed of. <\/strong>Your equity could be exactly what you need for startup costs, equipment, software, or marketing. And that could help increase your earning potential, so you\u2019re getting yet another financial boost.<\/li>\n<\/ul>\n
Bottom Line<\/h3>\n
Chances are, your house is worth quite a bit right now. If you\u2019re curious about the value of your home, connect with a local agent to run the numbers. That way, you\u2019ll know what you\u2019re working with and where you can go from here.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
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