What Is Home Equity and How Can I Use It?

Home equity is the portion of your property that you truly own—it’s the difference between your home’s market value and what you owe on your mortgage. In my experience, equity builds over time as you pay down your loan and as your home appreciates in value. It’s one of the most powerful wealth-building tools available to homeowners.

You can access equity through refinancing, home equity loans, or lines of credit, often at lower interest rates than other borrowing options. Many homeowners use equity to fund renovations, consolidate debt, or invest in additional real estate. However, it’s important to use it wisely. Tapping into equity should align with long-term financial goals rather than short-term wants.