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Moss Sidell

Building equity in your home can come in handy in several situations. The problem is that many homeowners don’t have a clear understanding of how to build equity in their homes. Read on to learn about building equity and you’ll see that there are easy steps that you can take. You’ll be able to build equity reliably and it’ll put you in a better position overall. 

Larger Down Payments

Putting a larger down payment on your house can help you to build up equity. Depending on your financial strategy, it might be best to put a bit more money down on your house than you have to. You can ask for advice from your lender or from a financial adviser. They will be able to help you determine the optimal amount of money that you should put down on a house. 


Your home will appreciate over time and this can cause it to become more valuable. Depending on the situation with the market, this will either take a long time or it will happen pretty fast. Some properties in specific areas might appreciate exponentially within five years while others will barely see any increase at all. It’s also possible for property values to go down for factors that could be out of your control. 

Pay Down Your Mortgage with Extra Cash

Paying down your mortgage with extra cash can be helpful for building equity in your home, too. If you get a large tax return, then you could make a few extra mortgage payments with that money. Likewise, if you receive an inheritance from a relative, you could pay off a chunk of your mortgage. It will always be beneficial to pay on your mortgage so that you can build more equity in your home. 

Improving Your Home 

You can also choose to improve your home so that it will be worth more money. Some homeowners might choose to put new siding on the house. Others might decide to update the floors and purchase new carpeting. Whatever you decide will be fine as long as it improves your home and adds to its overall value.