Take Advantage of Your Home’s Equity
Home equity means what
The portion of your home that you, the homeowner, actually own is what’s defined as your home’s equity. Meaning if you were to appraise your property (what it’s worth in today’s market) and subtract from that value any outstanding mortgage debt, you would be left with your home equity. This equity is created either by paying off your home’s mortgage over time and/or when your home appreciates over the remaining loan balance.
As of July of 2026, for residential homes in the Greater Scranton area, we’ve seen a 10.07% per year appreciation over the past 8 years.*
Furthermore, have you ever thought about what you could do with all your equity?
Three ways to access your equity
Sell your home
Speak to your real estate professional about how selling your property could affect your net worth. There are things to consider when selling such as real estate commission fees, repairs that might be made to the property before placing it on the market, closing costs and other fees. By deducting these expenses from the projected purchase price, you’ll get a good sense of your home’s equity.
Getting a home equity loan
If you have an investment idea or are reinvesting in your home and you need a fixed dollar amount, then a home equity loan might be perfect for you. This option provides the homeowner with the funds all at once. This loan typically has a more favorable rate than other personal loans, which may be available. Home equity loans have fixed rates with monthly payments, so if the interest rates climb your payments wouldn’t be affected.
Take on a home equity line of credit (HELOC)
Another way you can use the equity in your property as collateral is to utilize a HELOC. Think of this possibility as a “credit card.” It’s a revolving line of credit that typically has a lower rate than many other loan options.
Whenever you tap into your equity, you’ll want to make sure you’re making wise investment decisions, ones where you put your money into appreciating assets. Maybe you want to renovate your home or purchase a new investment property. Borrowing against your home by using up some of its equity is a great way to achieve this and increase your net worth.
Other helpful resources:
Smart Ways To Use Your Home Equity
Home Equity Hazards
Mortgage Calculator
Speak to a mortgage expert
Here are a few mortgage advisors many of our agents work with to help their clients achieve financial success.
If you have any further questions, we would love to help you. Call us today at 570-585-6880.
* Greater Scranton Board of REALTORS® data 2018-2026; median sale price of residential homes