09/20/2022
Think of home equity like a savings fund: your equity builds with each house payment you make (building up the value of your asset), just like building the value of your savings account by making deposits into your bank account.
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Equity is one of the biggest benefits of being a homeowner. As your home appreciates over time, you gain property value. Equity is the difference between what you owe on your mortgage and how much your home is currently worth. For example, if you owe $300,000 on your home and it’s now worth $475,000. this means your home equity is $175,000
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If you make your home payments on time and in full, you’ll slowly build equity. But if you’re hoping to build home equity faster, here are a few ways to do so.
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1. Make a big down payment
2. Get a 15-year mortgage
3. Refinance to a 15-year mortgage
4. Make some home improvements
5. Put extra money towards your mortgage
6. Play the long game