Do you currently own a home? If so, you may already have built-up home equity that could help support major financial goals. Home equity is the difference between what your home is worth and what you still owe on your mortgage, and it typically grows as your home value rises and your loan balance goes down.
In this guide, you’ll learn what home equity is, how it builds over time, and some of the common ways homeowners use it. You’ll also see a few market examples that show how equity can vary by location.
Home equity is the difference between your home’s value and the amount you still owe on your mortgage. For instance, if your home is worth $600,000 and you still owe $400,000 on your mortgage, your home equity is $200,000.
Both the increase in value of your home over time coupled with your regular mortgage payments contribute to the increase in home equity.
Home equity can become a meaningful financial resource over time. In the US, the average borrower had $310,500 in home equity in Q1 2026. For some homeowners, that may translate into proceeds when they sell. For others, it may represent borrowing power they can potentially use for large expenses while continuing to live in the home.
The amount of wealth Americans have stored in their homes remains substantial. Between Q4 2023 and Q4 2024, U.S. homeowners with mortgages saw average home equity increase by about $4,100. That helps illustrate how equity may build simply through a combination of homeownership and regular mortgage repayment.
Of course, equity growth is not the same in every market. Home values can rise or fall at different rates depending on location, which means homeowners in Washington, Oregon, Idaho, and Colorado may see different equity trends over time.
Let’s take a look at a few housing market examples across the Pacific Northwest and nearby markets.
In Idaho, the typical home value is $481,825 as of July 31, 2026, up 1.6% year over year. In Boise, values were up 1.3% year over year as of July 31, 2026. These figures show how owners in some markets may continue building equity through both appreciation and mortgage repayment.
The typical home value in Washington is currently $601,545, down 0.4% year over year as of July 31, 2026. Local values can vary widely within the state: Seattle had a typical home value of $851,471, down 1.8% year over year, while Spokane had a typical home value of $401,824, down 0.4% year over year as of July 31, 2026.
In Colorado, the typical home value is $538,932 as of July 31, 2026, down 1.7% year over year. In Denver, the typical home value is $533,060 as of July 31, 2026, down 2.7% year over year.
Home prices in Oregon show a typical home value of $502,156 as of July 31, 2026, down 0.3% year over year. In Portland, the typical home value is $534,270 as of July 31, 2026, down 0.1% year over year.
These examples are a reminder that equity can grow differently from one market to another. Even so, the basic idea stays the same: the more value you own in your home, the more flexibility you may have when planning future financial decisions.
As mentioned, you can profit handsomely if you sell your home after accumulating a great deal of equity in your home over the years. But you don’t necessarily have to wait to sell your home in order to tap into your home’s equity.
Here are a few ways that you can use your home’s equity.
If your home is in need of updating, you may have been holding off on making any changes simply because the cost of renovating is too great. But with home equity built up, you may be able to access that money to cover the cost of renovating your home.
The cost of post-secondary education continues to rise every year, making it very difficult to pay for college or university without the help of a student loan. But you may also be able to cover this large cost by using the equity you’ve built up in your home. That way you don’t have to burden yourself or your grown child with a hefty student loan that can take years and years to pay off.
If you’ve always dreamed of starting your own business and have a great idea that you strongly believe will be successful, you’ll still have some capital to get started. While you can always take out a small business loan, you may also be able to use the equity from your home to start your business.
When you first bought your home, you may have decided to start off with a “starter home” that was more affordable and wouldn’t leave you “house poor.” But now that your home is worth a lot more than what you paid for it and you’ve whittled your mortgage down to a lower amount, you may be able to move up into a home that you’ve always dreamed of but couldn’t afford a few years ago.
One common way to use built-up equity without selling is to take out a home equity loan. This type of loan typically gives you a lump sum and fixed payments, which may make sense if you know how much money you need for a specific expense, such as a renovation, tuition, or debt consolidation plan.
Because a home equity loan uses your home as collateral, it’s important to borrow carefully. If you cannot pay back the loan, the lender could foreclose on your home. Before moving forward, think beyond the monthly payment alone and compare fees and upfront costs as well. It’s also wise to avoid over-borrowing just because equity is available.
A home equity loan is only one way to access equity. Depending on your goals, you may also want to consider alternatives. A HELOC can offer revolving access to funds and often has a variable rate, which may fit homeowners who need flexibility rather than one lump sum. A cash-out refinance replaces your first mortgage with a new loan, which may be worth exploring if that structure better matches your situation.
The right option depends on how much you need, whether you prefer fixed or flexible access to funds, and how comfortable you are using your home as collateral. Loan availability, qualification standards, and best-fit solutions can vary based on your finances, property, and lender guidelines.
If you’re ready to take advantage of the equity in your home, Sammamish Mortgage can help!
Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been providing several mortgage programs and products with flexible qualification criteria to borrowers across the Pacific Northwest. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, reach out to us if you want help evaluating your home equity options and next steps.
Home equity is the difference between your home’s current value and the amount you still owe on your mortgage. It usually grows in two ways: your loan balance goes down as you make mortgage payments, and your home’s value may rise over time.
Subtract your remaining mortgage balance from your home’s current value. For example, if your home is worth $600,000 and you owe $400,000, your equity is $200,000.
Common uses include home renovations, college tuition, starting a business, and using sale proceeds to move into another home. Some homeowners also use borrowing options tied to equity when they want to access funds without selling.
Yes. One option is a home equity loan, which usually provides a lump sum with fixed payments. Other options mentioned include a HELOC, which offers revolving access to funds and often has a variable rate, and a cash-out refinance, which replaces your current first mortgage with a new loan.
A home equity loan generally gives you a lump sum and fixed payments. A HELOC works more like a revolving credit line and often has a variable rate. A cash-out refinance replaces your existing first mortgage with a new loan, which may be a better fit for some borrowers depending on their goals and loan structure preferences.
It can be, but it depends on your goals, costs, and ability to repay. Using equity may help fund major expenses or plans, but borrowing against your home also puts the property at risk if you cannot keep up with payments.
The main risk is that your home is used as collateral. If you cannot repay the loan, the lender could foreclose. It is also important to look beyond the monthly payment and compare fees, upfront costs, and the risk of borrowing more than you truly need.
The exact amount depends on the lender, your finances, your property, and the loan program. Qualification standards and available options vary, so the amount of usable equity is not the same for every homeowner.
It may be possible, depending on the option you choose and your financial situation. Some homeowners use the equity they have built to help move up into another home, while others may access equity through borrowing rather than selling first.
No. Equity growth can vary by location because home values do not move the same way in every market. The article’s examples show differences across Idaho, Washington, Colorado, and Oregon, while the broader national picture shows that U.S. homeowners with mortgages still hold substantial equity overall.
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