What Affects Your Home Equity and How to Build More of It

Posted by Spring EQ on Aug 4, 2025 4:37:11 PM

Your home equity is one of the most valuable financial tools you have. If you’re looking to fund home renovations or other major expenses, consolidate high-interest debt, or invest in the future, your equity could be key to unlocking a variety of solutions.

What is Home Equity?

Home equity is the difference between your home’s current market value and the amount you still owe on your mortgage. For example, if your home is worth $450,000 and you owe $300,000 on your mortgage, you have $150,000 in equity.

 

This amount can increase or decrease over time based on several factors, some of which are within your control, while others depend on the housing market.

 

What Affects Your Equity?

There are several key drivers that impact your equity, like:

 

  • Home value: If your home’s market value goes up, so does your equity. Rising property values in your area, renovations you make, or even low inventory can also drive growth.
  • Mortgage payments: As you pay down your loan balance over time, your equity increases.
  • Market conditions: This is one factor that’s out of your control. If home prices fall, your equity could too, even if you’ve kept up with your mortgage payments.

 

How to Build More Equity

Looking to grow your equity? Here are a few steps you can take.

 

  • Invest in improvements: Renovations like a kitchen remodel, energy-efficient upgrades, or a bathroom addition can boost your home’s value.
  • Stay on top of maintenance: Keeping your home in good condition helps retain value and makes it more appealing for future buyers.
  • Make extra mortgage payments: Even one additional payment a year toward your principal can significantly reduce your balance faster.

 

Why It Matters

Your home equity can open the door to new possibilities. Whether you’re considering a home equity loan (HELOAN) or a home equity line of credit (HELOC), the more equity you have, the more options you may unlock.

 

At Spring EQ, we offer a range of solutions designed around your needs. Check what you may qualify for—instantly and without impacting your credit.

 

Please Note: Spring EQ does not provide tax, legal, investment or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.

 

Topics: refinance, HELOC, debt consolidation, Fixed-Rate HELOC

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    Please Note: Spring EQ does not provide tax, legal, investment or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.

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