(303) 771-3850
Madison & Company logo

Back To Blog

6 Simple Ways to Build Home Equity Faster

Homeownership isn’t just about having a place to call your own...it’s one of the most effective ways to build wealth. As your home’s value increases and your loan balance decreases, you build something called equity. But did you know there are ways to grow that equity even faster? Here's how:
Make Extra Mortgage Payments
Even one extra payment per year (or switching to biweekly payments) can significantly reduce your principal balance over time, boosting your equity and reducing interest.
Avoid Over-Borrowing Against Your Home
Home equity lines of credit (HELOCs) can be helpful tools, but tapping too much equity can slow down your financial progress and reduce future flexibility.
Renovate Strategically
Not all improvements are created equal. Focus on upgrades that add value like kitchen or bathroom remodels, energy-efficient windows, or a finished basement.
Watch the Market
If your neighborhood is appreciating quickly, your equity could be growing fast. Keeping tabs on local market trends helps you make informed decisions.
Refinance Carefully
In some cases, refinancing to a shorter loan term or better interest rate can accelerate equity growth—just make sure the savings outweigh the costs.
Stay in Your Home Longer
The longer you stay, the more time you have to pay down your mortgage and benefit from appreciation. Equity tends to grow steadily over time, especially in stable or rising markets.
 

ActivePipe Message ID: 3041501

    Add Comment

    Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Comments

    1. No comments. Be the first to comment.