How Much Equity Is Sitting in Your Home Right Now?

Owning a home isn’t just about a roof over your head. Over time, it becomes one of your most valuable assets even if you haven’t measured that value lately. Let’s break down what your home is really worth now, how much equity you might have built, and what you can do with it.

What Is Home Equity?

Equity is the difference between your home’s current market value and what you still owe on your mortgage. For example: if your home is worth $500,000 and you still owe $200,000, your equity is $300,000. When you’ve owned and paid on your home for several years, and as values rise, that number tends to grow quietly in the background.

Right now, the typical homeowner with a mortgage has about $302,000 in equity.

Why Your Equity May Be Higher Than You Realize

• Strong Price Growth. Over the last five years, home prices nationwide have increased nearly 54%. That means even if prices have flattened or softened in your area recently, there’s a strong chance your home is worth substantially more than when you bought it.

• Longer Tenure Means More Gain. On average, homeowners stay in their homes about 10 years. Over a decade, just making mortgage payments, and holding through ups and downs, builds equity. Also, market gains tend to compound over time. For many homeowners, that adds up to over $200,000 in wealth from price appreciation alone.

What You Can Do with That Equity

Your equity isn’t just a number. It gives you options, including:

• Using it toward the down payment for your next home. In some cases, you might put enough toward your next purchase that you don’t need to borrow much, or at all, for a down payment.

• Renovating or upgrading your current home. Strategic improvements can make the place more livable and increase value if you ever sell.

• Taking equity out for something big like starting a business, investing, or even covering major life expenses.

What This Means for Homeowners

If you’ve owned your home for several years, it’s very likely your equity is bigger than you expect. That puts you in a position of strength. Even if you’re not planning to sell, knowing what your home is worth helps you make informed decisions—about refinancing, improvements, or future goals.

If you are thinking of selling—or just curious what your house is worth—getting a current, professional value estimate is smart. A good real estate agent can give you a sense of what your house is really worth in today’s market.

Want to know what your home equity looks like in our Arlington/DFW local market? I’d be glad to pull the numbers for your neighborhood.