Want to know something important 
that most people rarely get professionally checked? Spoiler alert: it may be the value of your home.
Because here’s the reality. Your house is likely the biggest financial asset you have. And if you’ve lived in it for a few years or more, chances are it may have been building wealth for you in the background – even if you haven’t been keeping tabs on it.
You might be surprised by just how much your equity may have grown (depending on market conditions), even as the market has shifted over the past few months.
What Is Home Equity?
That hidden wealth in your home is called equity. It’s the difference between what your house is worth today and what you still owe on your mortgage. Your equity grows over time as home values rise and as you make your monthly payments. Here’s an example to help you really understand how the math works.
Let’s say your house is now worth $500,000, and you have $200,000 left to pay off on your loan. That means you have $300,000 in equity. This is only and example for illustrative purposes; actual equity will vary by homeowner.
Why You Probably Have More Than You Think
Here are the two main reasons homeowners like you may have near record amounts of equity right now:
1. Significant Home Price Growth. According to the Federal Housing Finance Agency (FHFA), home prices have jumped by nearly 54% nationwide over the last five years (see map below):
Source: FHFA, September 2025)
This means your house could be worth much more now than when you first bought it (depending on your local market), thanks to how much prices have climbed over time. And if you’re worried because you’ve heard prices are flattening or even coming down in some markets, just know if you’ve been in your house for a few years (or more) you may have enough equity to sell and still come out ahead.
2. People Are Living in Their Homes Longer. Data from the National Association of Realtors (NAR), shows the average homeowner stays in their home for about 10 years now (see graph below):
Source: NAR, 3 Reasons Affordability is Showing Signs of Improvement This Fall, September 2025
That’s longer than it used to be. And over that decade? You’ve built equity just by making your mortgage payments and riding the wave of rising home values. Because the financial side of homeownership is about playing the long game, not worrying about little ups and downs in the market here and there. And over time, this can help you accumulate equity.
So, if you’re one of those people who’s been in their home for a bit, here’s how much the behind-the-scenes price growth has helped you out. According to NAR:
“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.(Source: NAR, 3 Reasons Affordability is Showing Signs of Improvement This Fall, September 2025)
What Could You Possibly Do with That Equity?
Your equity isn’t just a number. It’s a tool you can use to unlock your next big move. Depending on your goals, you could:
- Use it to help buy your next home. Your equity could help you cover the down payment on your next home. In some cases, it might even mean you can buy your next house in all cash.
- Renovate your current house to better suit your life now. And, if you’re strategic about your projects, they could add even more value to your home if you do sell later on.
- Start the business you’ve always dreamed of. Your equity could be exactly what you need for startup costs, equipment, software, or marketing. And that could help increase your earning potential, so you’re getting yet another financial boost.
Bottom Line
Chances are, your house may be worth quite a bit right now. If you’re curious about the value of your home, connect with a First Federal Bank Loan Officer to run the numbers, and give you a professional equity assessment report, so you know what you’re working with and where you can go from here.