For many homeowners, a house is more than just a roof over your head. It can also be one of the biggest financial tools you have. But when we talk about the value of your home, what does that really mean? And more importantly, what can you do with that value?
Whether you’re staying put, upgrading, or planning for the future, understanding your home’s value puts you in control. Here’s what you should know and how our team can help.
What does “home value” actually mean?
In simple terms, your home’s value is what someone would pay for it today as determined by a mix of factors.
- Location and neighborhood trends
- Square footage and lot size
- Age and condition of the home
- Recent renovations or upgrades
- Market conditions and buyer demand
Your home’s value can go up or down depending on what’s happening in your local market. Even small changes, like a nearby development, improvements to schools and parks, or the sale price of your neighbor’s house can influence your home’s value.
Knowing your home’s current value isn’t just about staying informed. It’s key to understanding where you stand financially. It affects your equity and your ability to refinance, borrow, or sell. If you don’t know your home’s current value, now’s a great time to check.
How home value builds equity
As your home’s value increases and as you continue making mortgage payments, you build equity. Equity is the difference between your home’s market value and what you still owe on your mortgage.
If your home is worth $350,000 and you owe $250,000 on your mortgage, you have $100,000 in equity.
That equity can serve as a safety net, a source of funds, or a way to reach new financial goals. Equity gives you financial flexibility for things like renovations, helping with college tuition, or preparing for retirement.
The more you know about your equity, the better positioned you are to make confident financial decisions.
Start leveraging your home’s value
Your home’s value isn’t just a number; it’s an opportunity. One of the most flexible ways to put your home’s equity to work is with a home equity line of credit (HELOC).
A HELOC gives you access to funds based on your available equity. You can borrow what you need when you need it and use those funds however it makes sense for your situation. Homeowners commonly use HELOCs to:
- Make home improvements
- Cover unexpected expenses
- Pay down high-interest debt
- Help with college costs
- Fund a major milestone or life event
Because HELOCs often come with lower interest rates than credit cards or personal loans, they can be a smart way to borrow responsibly.
Right now, SECU is offering a limited-time 1.99%* promotional APR HELOC through June, so it’s a great time to explore your options and see if it’s the right fit for you.
Know your value and make it work for you
Your home is more than a place to live. It’s a powerful asset that you can leverage. When you understand your home’s value, you open the door to new possibilities.If you are a SECU member with online or mobile banking, you can register for Home Value Tracker. This free resource helps you monitor your home’s estimated value over time and learn what to do with it. You’ll be able to see trends, understand how market shifts affect your property, and stay better informed for whatever your goals may be. Log into your account to register. Just click Home Value Tracker under the Financial Planning menu.
