You've probably heard homeowners are sitting on a ton of equity right now. But what does that actually mean for you? And how can you use it?
Your equity isn't just a number - it's real money that can help you make big moves.
How Much Equity Do Homeowners Have?
As you pay down your mortgage and home prices rise, you build equity - the portion of your home you own free and clear. According to the Census and ATTOM, two-thirds of homeowners have serious equity right now. 39% own their homes outright, and another 27% have at least 50% equity. CoreLogic says the typical homeowner has almost $300,000 in equity today.
Ways to Use Your Home Equity
1. Move Into a Home That Fits Your Life
Use your equity as a down payment on a home that fits where you are now. Some homeowners have enough to buy their next place in cash.
2. Upgrade Your Current Home
Reinvest in your property with kitchen upgrades, bathroom remodels, or an ADU. Talk to an agent first to prioritize projects with the best return.
3. Fund a Major Life Goal
Start a business, boost retirement savings, cover education costs, or help a family member with their down payment.
4. Access Cash Through a HELOC
A Home Equity Line of Credit (HELOC) lets you borrow against your equity as needed, like a credit card. It's a flexible option for ongoing expenses, renovations, or emergencies - and you only pay interest on what you use.
5. Avoid Foreclosure in Tough Times
If you're struggling with payments, your equity can be a lifeline. Sell and walk away with money instead of facing foreclosure.
What to Do Next:
Step 1: Get a personalized equity assessment from a local agent to know what you're working with.
Step 2: Meet with a financial advisor before tapping into equity. Keep at least 20% equity in your home as a financial cushion - something many homeowners didn't know in 2008.
According to the Intercontinental Exchange, most homeowners have "tappable equity" - equity you can access through cash-out refinances or HELOCs while maintaining that 20% cushion. We're talking $11.2 trillion nationwide.
Bottom Line
Your home equity is one of your biggest financial assets. Whether you're moving, remodeling, or working toward a goal, it's worth exploring your options.
Want to know where you stand? Reach out and let's talk about what makes sense for your situation.
