Do You Know How Much Equity You Have in Your Home?

Published:
April 8, 2021
Last updated:
April 13, 2022
In This Article

Owning a home is one of the greatest ways to build wealth over time.

Of course, you have to pay your mortgage on a regular basis and maintain the property to keep it in good shape. But other than that, all you have to do is sit back and allow your home’s value to appreciate over time. Before you know it, you may have far more in home equity than you may have thought.

That’s exactly what’s happening to homeowners all across the country, especially in the Pacific Northwest in states like Washington, Oregon, Idaho, and Colorado. 

If you’re a homeowner, your net worth has gotten a boost this past year given the recent home price appreciation and the increases in equity that this brings. Here’s what you need to know. 

What is Home Equity?

Home equity is the current value of your home minus what you still owe on your mortgage. Your equity increases in a couple of ways, including the following:

When you pay down your mortgage over time

When home appreciation drives up the value of your home

Average Home Equity Gains

According to recent data on US homeowners with mortgages, the average increase in home equity over the recent past in the US is $55,300.

But certain states far exceed that average, including WA, CO, OR, and ID. More specifically, here’s how these four states fared according to the data recently collected:

Average equity gain:

  • WA – $95,000
  • OR – $59,000
  • ID – $63,000
  • CO – $75,000

Home Price Appreciation in WA, ID, OR, and CO

To give you some perspective on how much homes have increased in price over the past year, let’s take a look at where prices are at today – in April 2022 – relative to where they were last year.

  • Washington. The average home price is currently $593,897. Home prices have increased 24.1% since April 2021.
  • Oregon. The average home price is currently $500,527. Home prices have increased 19.7% since April 2021.
  • Colorado. The average home price is currently $558,210. Home prices have increased 23.5% since April 2021.
  • Idaho. The average home price is currently $467,315. Home prices have increased 28.1% since April 2021.

As you can see from the above numbers, the prices of homes in these four states have increased a great deal in just a 12-month span of time. That’s a lot of equity accumulated in such a short period of time.

If homeowners in these states were to sell today, they would realize hefty profits. And the longer they hold on to their properties, the more equity they can expect to see in the years to come, as real estate always appreciates over time, despite potential blips here and there.

Home Equity Can Open Many Doors

Having equity in your home can open up many financial possibilities for you. Aside from helping you realize a healthy profit when or if you sell, you can also use that equity to cover the cost of major expenses.

For instance, you may need a sizable amount of money to pay for a major home renovation, your child’s college tuition, a big family vacation, or an urgent medical expense.

You can use the equity in your home to cover these costs through financial products such as a second mortgage or a Home Equity Line of Credit (HELOC). With equity, you can borrow from your own home without having to go through the process of applying for a traditional personal loan.

Do-you-Know-How-Much-Equity-You-Have-in-Your-Home

Do You Want to Add an Equity-Building Asset to Your Portfolio?

If you are not yet a homeowner but are looking to become one in the near future, now may be the perfect time to get into the market. Today’s home price appreciation is driving equity higher throughout the country. If your needs are changing and you’re ready for a new home, your equity may be a great asset to power your next move.

Today’s Mortgage Rates

Need a Home Loan in WA, ID, OR, or CO?

Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.

Get an Instant Mortgage Rate Quote Today

Other Blogs You May Like
Your Home Equity Can take You Places
April 7, 2022
6 min read
Your Home Equity Can take You Places
Do you currently own a home? You’ve probably accumulated quite a bit of equity. Check out this...
Buy a Home This Year To Build Wealth
April 6, 2022
5 min read
Buy a Home This Year To Build Wealth
There are more than a few ways that buying a home builds wealth and thus is one of the best ways...
Show 2 more posts
from this category

Connect with America’s Lending Experts today!

Whether you’re buying a home or ready to refinance, our professionals can help.

Compare Mortgage Rates in Your Area Instantly

No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.