In challenging real estate markets, home equity losses may happen. Homeowners and investors alike enjoy real estate appreciation, but intense market downturns may cause a lack of confidence in the housing markets. If your property has depreciated in value, you could be able to regain some of your own equity. Time and patience may be needed until your home equity has been restored.
Use Zillow to discover the current market value of your house (see link under Resources).
Review your mortgage balance. The gap between the value of your home and the amount you owe is your existing home equity.
Make extra payments. For each $84 monthly payment which you employ to your standard mortgage repayment, you will reduce the amount owed on your home and potentially increase your equity by $1,000 per year. The precise equity increase in your situation will fluctuate with market requirements.
Pay your mortgage biweekly to attain an extra payment each year. Each year has 26 biweekly periods, meaning that you will effectively make 13 mortgage payments. Your equity will raise quicker.
Boost your home. Making improvements such as updating kitchens, remodeling bathrooms, making home developments, adding decks and finishing bathrooms can raise the value of your home. If your property increases in value faster than the average for similar homes in your marketplace, you will regain some of the equity that your home has lost.