Ever thought about how often you get a professional check on something really important? Here’s a hint: it’s probably not as often as it should be — the value of your home.

Here’s the thing: your home is probably your most valuable financial asset. If you’ve owned it for several years, it’s likely been steadily growing in value without you even realizing it.

You might be amazed at how much it's expanded, especially considering how the market has changed in the last few months.

What Is Home Equity?

Think of the extra value you’ve built up in your home as equity. It’s basically the gap between what your home is worth now and how much you still owe on your mortgage. Over time, your equity grows because home prices tend to go up and because each monthly payment chips away at your loan balance. Let me walk you through an example so the numbers make more sense.

Imagine your home’s worth about $500,000 and you still owe around $200,000 on the mortgage. That leaves you with roughly $300,000 in equity—which is pretty close to what most homeowners have right now.

On average, homeowners with a mortgage have roughly $302,000 in equity, according to Cotality.

Why You Probably Have More Than You Think

Homeowners like you have near-record amounts of equity right now for two main reasons: rising home values and paying down your mortgage over time. These factors combined mean more of your home's worth is all yours.

Here are the two big reasons why homeowners like you have almost record-high equity right now:

1. Big Growth in Home Prices. The Federal Housing Finance Agency (FHFA) says home prices have climbed almost 54% nationwide over the past five years (check out the map below).

Chances are, your home is worth a lot more now than when you first bought it, thanks to rising prices over time. Even if you’ve heard that prices are leveling off or dropping in some areas, if you’ve owned your home for a few years or longer, you probably have enough equity to sell and still make a good profit.

2. Homeowners Are Staying Put Longer. According to the National Association of Realtors (NAR), the average homeowner now lives in their home for around 10 years (see the graph below).

It’s taken longer than you might have expected, but over the past ten years, you’ve steadily built up equity just by making your mortgage payments and benefiting from the general increase in home values. Homeownership is really about looking at the big picture and thinking long term, rather than stressing over the occasional market fluctuations. When you keep that perspective, it becomes clear that, over time, you’re coming out ahead.

If you’ve been living in your home for a while, here’s a look at how much the behind-the-scenes price growth has worked in your favor. According to NAR:

““Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
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— NAR

What Could You Actually Do with That Equity?

Your equity isn’t just sitting there—it’s something you can actually put to work. Depending on your goals, it could help you take your next big step, like:

• Put it toward your next home. You can use your equity to cover the down payment—and in some cases, it might even give you the option to pay all cash.

• Upgrade the home you’re in. Renovations can make your space fit your life better right now, and if you choose wisely, they could also boost your home’s value for when you sell down the road.

• Fuel a new business. Equity can provide the startup funds you need for things like equipment, software, or marketing—and that could help grow your income and build even more financial security.

Bottom Line

Your home might be worth more than you think. If you want to find out its current value, let’s get in touch. We’ll crunch the numbers and provide you with a detailed equity assessment report, so you have a clear picture of your options moving forward.