💸 Your Home Equity Is at a 5-Year High—Here’s How to Use It

What should you do when your home’s value has soared—and how do you turn that equity into real opportunities?

Right now, homeowners across Bergen County are sitting on a goldmine—record-high home equity built over the last five years. Whether you bought pre-pandemic or refinanced during the rate dips, the chances are good that your property is worth significantly more today.

But here’s the question: Are you using that equity strategically?

Let’s break down what home equity really is, what you can do with it in 2025, and how to take the next step toward making it work for your lifestyle and goals.

What Is Home Equity (and Why Is It So High Right Now)?

Home equity is the difference between what your home is worth and what you still owe on your mortgage. Thanks to steady appreciation across Northern NJ—and especially in hot spots like Fort Lee, Ridgewood, and Englewood—many local homeowners have gained $100K, $200K, or more in equity since 2020.

Even with interest rates higher than recent lows, property values have stayed strong. That means your equity has likely grown significantly, whether you realized it or not.

4 Smart Ways to Use Your Home Equity in 2025

1. Move Up or Downsize

Thinking about more space, a better location, or a simpler lifestyle? Your equity can be your ticket. Use it as a down payment on your next home—or even to buy in cash, depending on your goals.

This strategy is ideal if you're:

Looking for your forever home
Ready to leave a multi-level layout for a ranch or condo
Thinking about moving closer to family or into a different Bergen County neighborhood

2. Invest in a Second Property

Dreaming of a rental property, vacation home, or weekend getaway in the Catskills or Jersey Shore? Many homeowners are tapping into their equity to fund second homes and build long-term wealth.

With rental demand high, this can be a smart way to leverage your position without depleting your savings.

3. Renovate or Add Value

Maybe you're not ready to move—but you want your home to work better for your lifestyle. Renovating your kitchen, adding a home office, or finishing a basement can increase comfort and raise your resale value.

Using a home equity line of credit (HELOC) or cash-out refinance, you can reinvest your equity right back into your property.

4. Pay Down High-Interest Debt

If you're carrying credit card balances or personal loans, your home equity can be a lower-cost way to wipe that slate clean. This strategy can simplify your finances, improve your credit score, and give you more monthly breathing room.

Why 2025 Is the Year to Evaluate Your Equity

With home values stabilizing, the window to use equity at peak value may not last forever. Whether you're planning a move this year—or just want to weigh your options—this is the time to get clear on your numbers.

The key is knowing what your home is really worth in today’s market and creating a plan that aligns with your financial goals.

Let’s Run the Numbers and Explore Your Options

Not sure what your home is worth right now—or how much equity you’ve built? Let’s talk.

I'll give you a clear picture of your home's current value, what that equity unlocks for you, and what moves make the most sense in today’s market.

📅 Schedule a call with Scott Selleck today: tidycal.com/slselleck
📞 201‑970‑3960
📧 [email protected]
🌐 www.SelleckSellsNJ.com
🏢 Scott Selleck, Realtor, KW City Views Realty – Fort Lee, NJ Location