Here’s How to Use Yours to Power Your Next Move
If you’re like most homeowners in today’s market, you’re sitting on a significant financial resource—and you might not even realize it. According to recent national data, the average homeowner now has $311,000 in equity built up in their property. That’s not just a number on paper—it’s real money that could unlock the door to your next chapter, whether that means upsizing, downsizing, relocating, or investing.
Let’s break down what home equity is, why it’s grown so rapidly in recent years, and how you can use it wisely to make your move.
What Is Home Equity, and How Did You Build It?
Home equity is the difference between what your home is worth and what you still owe on your mortgage. For example, if your home is valued at $500,000 and your remaining loan balance is $189,000, you’ve built up $311,000 in equity—right on average with national homeowners.
You build equity in two key ways:
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Mortgage Paydown: With every payment you make, you reduce the principal balance of your loan. Over time, this adds up significantly.
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Home Appreciation: Home values have risen dramatically over the past decade due to low inventory, strong demand, and economic shifts. If your home has appreciated even modestly, your equity has likely grown—possibly a lot.
Why Home Equity Is a Game-Changer in Today’s Market
With mortgage rates and home prices in flux, equity gives you flexibility. It can act as:
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A down payment on your next home
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A source of cash for renovations or upgrades
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A way to pay off high-interest debt
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A financial bridge if you’re retiring or relocating
Even if you’re not ready to sell, knowing your equity position helps you make better financial decisions, from refinancing to long-term planning.
Thinking About Selling? Use Equity to Move Up or Downsize
If your current home no longer fits your needs, equity can help you transition smoothly:
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Upsizing? Use your equity as a substantial down payment to reduce your new mortgage amount or eliminate PMI (private mortgage insurance).
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Downsizing? You could buy a smaller home in cash and pocket the difference—or invest it for income.
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Relocating? Equity gives you the freedom to move without being handcuffed by your existing mortgage.
In many cases, sellers are walking away with enough equity to buy their next home without needing additional financing. That kind of leverage is rare—and it won’t last forever.
Not Ready to Sell? Consider a Reinvestment Strategy
Some homeowners choose to tap into their equity without selling. Popular options include:
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Home Equity Line of Credit (HELOC): Revolving credit for home improvements, tuition, or emergencies.
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Cash-Out Refinance: Replaces your current mortgage with a new, larger one—allowing you to pocket the difference in cash.
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Home Equity Loan: A lump-sum loan based on your equity with fixed payments.
Used responsibly, these options can help you maximize your investment without uprooting your life.
How to Find Out How Much Equity You Have
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Estimate Your Home’s Market Value: Online tools can give you a rough estimate, but a local real estate expert will provide the most accurate valuation.
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Check Your Loan Balance: This is usually listed on your monthly mortgage statement or online portal.
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Do the Math: Home Value – Loan Balance = Your Equity
Better yet, let’s do it together. I’ll run a comparative market analysis (CMA) to pinpoint your current home value and walk you through your equity potential. It’s fast, easy, and could reveal life-changing options.
Your Equity Could Be the Key to Your Next Big Move
Whether you’re dreaming of a new home, paying off debt, or simply curious about your options, your home equity is one of the most powerful financial tools you have. With $311,000 as the national average, you may have more freedom than you think—and now’s the time to find out.
Let’s connect today to review your home’s current value, calculate your equity, and explore smart ways to use it to your advantage. Whether you’re ready to list, refinance, or just plan ahead, I’m here to help every step of the way.
📞 Call or text: (203) 994-3950
📧 Email: StephenSchappert@gmail.com
