When was the last time you checked the value of your home? While it might not be something you review as frequently as your bank account or credit card statements, your home’s worth plays a crucial role in your financial picture. For most homeowners, their house is the largest asset they own—and chances are, it’s been quietly increasing in value over time.

If you haven’t looked into your home equity recently, you might be surprised to learn just how much wealth you’ve built without even realizing it.

What Is Home Equity, and Why Should You Care?

Home equity is the difference between what your home is worth in today’s market and what you still owe on your mortgage. It grows in two primary ways:

1. As you pay down your mortgage, your loan balance decreases.
2. As the real estate market appreciates, your property’s value increases.

Here’s a simple example: If your home is currently valued at $500,000 and you still owe $200,000 on your mortgage, your equity is $300,000. That’s a significant amount of wealth—often accumulated passively over time.

According to recent data from Cotality (formerly CoreLogic), the average U.S. homeowner with a mortgage holds approximately $311,000 in home equity. That’s a remarkable sum, and one that could open doors to many opportunities.

Why You May Have More Equity Than You Think

Two major trends have contributed to the substantial equity many homeowners are sitting on today:

1. Rapid Home Price Appreciation

Over the past five years, home prices nationwide have surged more than 57%, according to the Federal Housing Finance Agency (FHFA). That growth translates directly into increased equity for homeowners who bought before or during that price climb.

2. Longer Homeownership Tenure

The National Association of Realtors (NAR) reports that the average homeowner stays in their home for about 10 years. In that time, even without aggressive mortgage repayment, homeowners naturally build equity simply through monthly payments and rising property values.

In fact, NAR notes that the typical homeowner has gained over $200,000 in wealth over the last decade solely from appreciation. That’s like having a high-performing investment account you didn’t even realize was working for you.

What Can You Do with Your Home Equity?

Your equity isn’t just a number on a statement—it’s a resource. When used wisely, it can be the gateway to achieving your next major financial or personal goal. Here are some ideas:

• Upgrade to Your Next Home

If your current home no longer suits your needs, your equity can serve as a substantial down payment on your next home—or even allow you to purchase it outright in cash. This can lower your monthly expenses and put you in a better financial position moving forward.

• Renovate or Expand Your Current Home

Equity can be used to fund home improvements, whether it’s a kitchen remodel, new roof, or a room addition. Strategic renovations can also increase the value of your home further, creating a cycle of growth.

• Start a Business or Invest in Your Future

Dream of being your own boss? Your home equity could provide the capital needed to launch your own business, cover startup costs, or invest in professional development that boosts your long-term income.

• Consolidate Debt or Fund Education

Equity can be used to consolidate high-interest debt into a more manageable payment or finance higher education for yourself or a family member—both of which can have lasting financial benefits.

Is Now the Time to Tap into Your Equity?

Deciding when and how to use your home equity depends on your goals, financial health, and market conditions. A local real estate expert or financial advisor can help you assess the value of your home, explore your options, and determine the best course of action for your situation.

Even if you’re not planning to sell right away, understanding your equity gives you more control over your finances. Whether you’re planning for retirement, exploring a new chapter, or simply curious, knowledge is power—and your home may be your most valuable asset.

Bottom Line

Home equity is more than just a byproduct of owning property—it’s a wealth-building tool. If you’ve been in your home for several years, you’re likely sitting on a significant amount of equity that could help you make a move, improve your living space, or launch a new financial venture.

Don’t leave your equity untapped. Whether you’re looking to sell, upgrade, or simply explore your options, a trusted real estate professional can help you make the most of what you’ve built.

So, if you sold your home and unlocked your equity—what would you do with it? Now might be the perfect time to find out.