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What Is Home Equity—and How Can You Use It?
Dated: August 31 2025
Views: 52
When people talk about the “wealth” of owning a home, they’re often talking about home equity. But what exactly does that mean, and how can you put it to work? Let’s break it down.
What Is Home Equity?
Home equity is the difference between what your home is worth and what you still owe on your mortgage.
For example:
If your home is valued at $300,000
And you still owe $200,000 on your loan
You have $100,000 in equity
The more your home value rises and the more you pay down your mortgage, the more equity you build.
How to Build Home Equity
Make consistent mortgage payments – Each payment chips away at your loan balance.
Boost your home’s value – Renovations, upgrades, and even curb appeal can increase your property’s market value.
Stay put – Over time, real estate tends to appreciate, growing your equity naturally.
Smart Ways to Use Home Equity
Once you’ve built equity, you may be able to tap into it through a home equity loan, home equity line of credit (HELOC), or cash-out refinance. Here’s what homeowners often use it for:
Home Improvements
Use equity to reinvest in your property—like adding a deck, updating a kitchen, or finishing a basement.Debt Consolidation
Pay off high-interest credit cards or loans with a lower-interest home equity option.Education or Big Expenses
Many families use equity to cover tuition, weddings, or medical costs.Emergency Fund
Having access to a HELOC can provide peace of mind for unexpected situations.
Things to Keep in Mind
Borrowing against your equity means taking on more debt—use it wisely.
If home values drop, you could end up with less equity than you expected.
Always compare terms, fees, and interest rates before making a decision.
Final Thoughts
Home equity can be one of the most powerful financial tools of homeownership. Whether you use it to upgrade your space, invest in education, or consolidate debt, the key is making informed choices that align with your long-term goals.
Curious how much equity you’ve built in your home? Let’s talk about your options.
Alex Mabry
I am passionate about real estate! Growing up we moved around a lot, with a family of 7 my parents would find a diamond in the rough to transform into our family home, my allowance was earned helping ....
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REALTORS® Association of Northeast Wisconsin All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s), nor Berkshire Hathaway HomeServices Fox Cities Realty - Berkshire Hathaway Home Services, nor RANWMLS shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Berkshire Hathaway HomeServices Fox Cities Realty - Berkshire Hathaway Home Services may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2026 REALTORS Association of Northeast WI MLS, Inc. All rights reserved. Last Updated: September 20, 2026 11:42 PM UTC
REALTORS® Wisconsin Real Estate Exchange (WIREX). All information deemed reliable but not guaranteed. Information is supplied by seller and other third parties and has not been verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s), nor Berkshire Hathaway HomeServices Fox Cities Realty - Berkshire Hathaway Home Services, nor WIREX MLS shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Berkshire Hathaway HomeServices Fox Cities Realty - Berkshire Hathaway Home Services may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2026 Wisconsin Real Estate Exchange (WIREX) MLS, Inc. All rights reserved. Last Updated: September 20, 2026 11:38 PM UTC
