09/28/2026
π‘ Home equity = the difference between what your home is worth and what you owe on it.
Example:
Home value $500,000
Mortgage balance $350,000
Your equity $150,000 π°
Why it matters:
π As your home value rises, your equity grows
π³ You can borrow against it for renovations or investments
π¦ It becomes a major part of your net worth over time
π When you sell, equity becomes cash in your pocket
Every mortgage payment = more equity. Every year of appreciation = more equity. This is why homeownership builds wealth. And why renting doesn't