Over the past several years, many homeowners have seen a significant increase in their home’s value. This rise in value often means a rise in equity—the difference between what you owe on your mortgage and what your home could sell for today.

Why this matters:

• On average, U.S. homeowners now have hundreds of thousands of dollars in equity.
  
  
• This equity can be a powerful tool when you’re ready to move—whether it’s upsizing, downsizing, or relocating.
  
  

Ways Home Equity Can Work for You

1. Fund Your Next Down Payment
   Selling your current home could provide you with enough equity to cover a substantial down payment on your next property—reducing the amount you need to finance.
   
   
2. Buy with Little or No Loan
   If you’re moving to a smaller or more affordable home, your equity might even be enough to buy it outright, avoiding a mortgage altogether.
   
   
3. Offset Today’s Interest Rates
   In a higher interest rate environment, applying a large down payment from your equity can help lower your monthly mortgage costs and make a move more financially comfortable.
   
   

How to Know Your Equity Position

The amount of equity you have depends on your home’s current market value and your remaining loan balance. A trusted real estate professional can help you get a clear picture with a market analysis—no guesswork needed.

Bottom line: If you’ve been putting off a move because of concerns about affordability, your home equity could make it far more possible than you think.