If you’ve been in your current home for more than a few years, you may be sitting on a powerful financial tool: your home’s equity.

With property values rising across Central Ohio, many homeowners are discovering that they’re in a strong position to upgrade or invest. But equity is only valuable if you put it to work.

But first, what is home’s equity?

In simple terms, equity is the difference between your home’s current market value and the amount you still owe on your mortgage. If your home is worth $750,000 and you owe $450,000, you have $300,000 in equity.

Equity builds over time through:

Paying down your loan principal
Natural appreciation in home values
Renovations and improvements that increase resale value

Here’s how to make smart, strategic moves using the equity you already have.

Option 1: Use your equity to make upgrades.

Your needs have changed — and your next home should reflect that. Maybe you…

Needing more space or a better layout
Craving a walkable neighborhood or shorter commute
Seeking higher-end finishes, smart home features, or amenities

Instead of starting from scratch, you can use your existing equity to:

Cover a substantial down payment
Avoid mortgage insurance
Negotiate better financing terms

Option 2: Use your equity to build long-term wealth.

For financially stable homeowners, using equity to invest in real estate can be a game-changer.

Potential strategies include:

Purchasing a rental property in high-demand areas like Franklinton or Clintonville
Buying a short-term rental or second home (think Hocking Hills or Downtown condos)
Investing in a duplex or multi-unit property for long-term cash flow

Depending on your financial goals, you could use:

A cash-out refinance
A home equity loan
A HELOC (Home Equity Line of Credit)

Each has pros and cons, which we always recommend evaluating with both your lender and a strategic real estate advisor.

Important things to consider before tapping into equity:

Before you make a move, ask yourself these important questions:

Will my next property appreciate as well (or better) than my current home?
Do I have a plan if interest rates shift or the market slows?
How does this impact my overall financial picture, cash flow, and long-term goals?

This is where guidance matters. We work with clients to run the numbers, evaluate the local market, and align your next move with your bigger financial picture.

Real examples in Columbus:

A Worthington couple used their equity to buy a tax-abated investment condo in Downtown, generating $2,200/month in passive income.
A Bexley homeowner upgraded from a 3BR colonial to a newly built 4BR in Upper Arlington without increasing their monthly mortgage payment, thanks to equity.

Put your home equity to good use.

You worked hard to build equity. Let’s make it work harder for you. Whether you want to right-size, invest, or build long-term wealth, we’ll help you unlock your equity with intention.

The Mancini Group
mandy@themancinigroupsells.com
614-796-5077

Smart money moves: Using equity to upgrade or invest.