7 ways to build equity in your home

Paying down your mortgage not only eliminates monthly payments but also builds home equity, which is the portion of your home you own outright. Home equity can be accessed through cash-out refinancing or second mortgages for major expenses or future home purchases. To calculate equity, subtract the remaining mortgage from the home's market value. Building equity is important for wealth accumulation and financial flexibility. Strategies to build equity faster include staying in your home longer, making biweekly payments, and paying extra toward the principal.