Building Equity - Minnesota Homebuyer's Connection

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Building Equity

Investing in a home can be a bridge to financial flexibility as you grow your equity. There are financial benefits of homeownership.

The Financial Benefits of Homeownership to Building your Equity!

Building equity in your home is one of the most significant advantages of homeownership. Discover how it can provide you with financial flexibility and help you achieve your future goals.

Owning a home is not only a place to live, but it’s also a smart financial investment. One of the most significant financial benefits of homeownership is building equity over time. Equity is the difference between the market value of your home and the amount you owe on your mortgage.


As you make mortgage payments, you will gradually build equity, which can be used to finance future expenses or to purchase another property. Building equity in your home can provide you with more financial flexibility. For example, you can use your home equity to fund home improvements, pay for child college education, or even start a business.

The longer you own your home, the more equity you will build, which can give you more options and opportunities down the line. This makes owning a home a smart long-term investment that can provide financial security and stability. Bundrick and Getler from their article, Home equity: What it is and why it matters, detailed that it is typically recommended that prospective home buyers follow the “five-year rule”. Within five years the homeowner would typically have begun to build equity to recoup their initial purchase costs if they decided to sell.

So, if you’re considering buying a home, keep in mind that building equity is one of the most significant benefits of homeownership. With each mortgage payment you make, you are building a financial asset that can help you achieve your future goals.

Contact us today to learn more about how owning a home can benefit you financially!

Bundrick, H. and Getler, T. (2021) Home equity: What it is and why it matters, NerdWallet. Available at: (Accessed: March 29, 2023).

Minnesota Homebuyer’s connection (2022) Minnesota Homebuyer’s Connection. Available at: (Accessed: March 24, 2023).
Minnesota Home Buyers Connection

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