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Before you start pulling up your floorboards or rummaging around in the attic looking for cash, we should probably tell you that what we’re talking about here is home equity. Equity is basically the difference between the current value of your home and how much you owe on it.

The good news is that you don’t actually have to sell your house to access your home equity. You can tap into it with a home equity loan, home equity line of credit (HELOC) or even a reverse mortgage. That’s money you can use for a renovation, college tuition, a new car, retirement or a financial emergency. And remember your home equity factors into your personal net worth.

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So just how can you do that? We’re glad you asked. We’ve put together this nifty graphic that shows how the one easy change of making biweekly mortgage payments can help you build significantly more equity surprisingly quickly. Have a look and see if you’re not shocked at the equity building difference biweekly payments can make.

 

Source:

http://www.fool.com/investing/general/2015/05/25/the-typical-american-has-this-much-in-home-equity.aspx

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