If you're a homeowner, your net worth has gotten a big boost. That's because recent home price appreciation has increased your equity. Here is what you need to know.
What is Equity?
Equity is the current value of your home minus what you owe on the loan. It increases when:
- You pay down your loan over time
- Home price appreciation drives up your home's value
Since this time last year, the average homeowner's equity grew by $53,000.
How It Benefits You
You can use rising home equity to fuel a move. It may be some (if not all) of what you need for a down payment on your next home.
Courtesy of Keeping Current Matters