Your Home Equity Check: What You’ve Built and What You Can Do With It
You probably know your mortgage payment by heart. But do you know how much of your home you actually own?
That number is your equity. For a lot of Seacoast homeowners, it’s grown a lot more than they realize.
The big picture
According to Cotality’s latest Homeowner Equity Report (Q2 2026), the average American homeowner with a mortgage now has about $310,000 in equity. New Hampshire ranks 10th in the country for average equity, and the typical NH homeowner has gained roughly $207,000 since 2020. [VERIFY]
That’s a big shift in a short time. And most people haven’t touched it. Cotality’s principal economist put it this way: “Homeowners have accumulated enormous amounts of equity, but most of it isn’t doing much.”
How to figure out yours
The math is simple:
What your home would sell for today − what you still owe = your equity
The tricky part is the first number. Online estimates are a starting point, but they can miss by a lot on the Seacoast, where two homes on the same street can be very different. A comparative market analysis built from actual recent local sales is much more reliable. We’re always happy to put one together for you. No strings, no sales pitch.
What you can do with it
1. Nothing. Really. Equity sitting in your home isn’t wasted. It’s a cushion. It protects you if the market dips, and it’s yours when you eventually sell. If you’re happy where you are, letting it grow is a perfectly good plan.
2. A home equity line of credit (HELOC) or home equity loan. This lets you borrow against your equity without touching your current mortgage. That matters if you locked in a low rate a few years ago. The trade-offs: HELOC rates are usually variable, and your home is the collateral. It works best for things that add value, like a kitchen update, a new roof, or an addition. Not so much for a vacation.
3. A cash-out refinance. You replace your mortgage with a bigger one and take the difference in cash. Here’s the honest part: if your current rate starts with a 3 or a 4, this usually isn’t a good deal right now. You’d be trading your low rate on your entire balance for today’s rates, which have been hovering around 7%. [VERIFY] For most people, a HELOC makes more sense.
4. Make a move. Your equity can become the down payment on your next home. That might mean moving up to more space or a dream spot near the water. It might mean downsizing and keeping some cash in your pocket. Either way, your next rate will probably be higher than the one you have now. But a big down payment means a smaller loan, which can take a lot of the sting out of that.
5. Invest it. Some homeowners use equity toward a rental property or a second home. It can build long-term wealth, but it comes with more risk and more work. Talk to a financial advisor and a lender before going this route.
A few words of caution
Borrowing against your home is still borrowing. Your house is on the line if you can’t make the payments. Equity also isn’t cash until you sell or borrow, and home values can go down as well as up. Go in with a plan, not just because the number looks good.
The bottom line
You don’t have to do anything with your equity. But you should know what it is. It’s one of the biggest financial pieces of your life, and knowing the number puts you in charge of your options.
Curious what your home is worth in today’s market? Reach out anytime. We’ll run the numbers with you, and if you want to talk about borrowing, we’ll connect you with a lender we trust.
This post is for general information only and isn’t financial, tax, or legal advice. Talk to a licensed lender or financial advisor about your specific situation.
