Practical Ways to Grow Your Equity
Home equity builds in two ways: paying down your mortgage balance over time, and your home’s market value increasing. While you can’t control the housing market directly, there are concrete steps that speed up the first part of that equation and, in some cases, support the second as well.
- Make extra principal payments — even modest additional payments reduce the interest that accrues on your balance
- Choose a shorter loan term — a 15-year mortgage builds equity much faster than a 30-year loan
- Make a larger down payment — you start with more equity from day one
- Invest in value-adding renovations — kitchens and bathrooms tend to offer the strongest returns
You can track your current equity position using our home equity calculator, and if you’re considering a renovation to boost value, our home ROI calculator can help you estimate whether the project is likely to pay off.