Purchasing real estate is one of the most reliable paths toward building personal wealth, especially in Middle Tennessee, where home values are consistently increasing. However, the amount of your home’s value that should be included in your assessment of your net worth is called equity, and it is our topic today. Whether you’re shopping for your first property, wondering whether equity can help you improve your current home, or are curious whether paying off more of your home loan now is the fastest way to beef up your wealth, we’re here to help. 

Q: What is equity, and how is calculated?

A: Simply put, equity is the dollar amount assigned to the percentage of your home that you independently own.

For simplicity’s sake, let’s use