The equity picture right now
Home equity is simply your home's value minus what you owe on it. Thanks to years of price appreciation, homeowners have never held more of it in aggregate. ICE reported that total mortgage-holder equity hit a record roughly $18 trillion in the second quarter of 2026, with an average of about $212,000 in tappable equity per borrower (equity you could borrow while keeping a 20% cushion).
The typical mortgaged homeowner held about $295,000 to $313,000 in total equity through early 2026, per ICE and Cotality data. Not bad for an asset many people bought with a modest down payment.
How to calculate your own equity
Start with a realistic current value for your home, which is where local knowledge matters. An automated estimate is a starting point; recent sales of comparable homes on your street are the real measure. We can help you get that number for free.
Then subtract your current loan balances: your first mortgage, any home equity loan or line of credit, and any other liens. What remains is your equity. If your home is worth $500,000 and you owe $300,000, you have $200,000 of equity.
The smart ways to use equity
Sell and move. Selling converts your equity into cash for your next chapter: downsizing, relocating, or trading up. This is the route most of our clients take, and the equity often funds both the move and the next purchase.
Home equity loan or HELOC. A fixed home equity loan or a HELOC lets you borrow against equity for renovations, education, or consolidation. Rates and terms vary, and a lender can run your numbers.
Cash-out refinance. Refinancing into a larger mortgage and pocketing the difference is another path, especially if rates make sense for your situation.
For homeowners 62 and older, a reverse mortgage can convert equity into income without monthly payments. That is a serious decision that deserves a careful conversation with a qualified counselor.
Equity is power, but use it with a plan
Equity is a tool, and like any tool it is best used deliberately. Borrowing against your home increases your debt and your monthly obligations, so the honest question is whether the money will move you toward a goal or just move your debt around.
If selling is part of your plan, we can show you exactly what your home could bring, what the sale would net, and what that means for your next move. Straight numbers, no pressure. Talk soon.
