Knowing Your Home’s Current Value Could Change Your Next Move

Over the past few years, both home prices and mortgage rates have increased, causing many homeowners to reconsider or postpone their plans to move. If you currently have a mortgage rate around 3%, it is understandable to wonder whether moving and taking on a new mortgage at a much higher rate makes financial sense.

However, mortgage rates are not the only factor to consider when deciding whether you can afford your next move. You also need to look at the equity you have built in your current home. That equity could significantly change what is possible for your next step.

According to a Keeping Current Matters article published on August 20, 2026, the median amount of equity held by U.S. homeowners with a mortgage is approximately $310,500. This is a national figure, so the amount varies depending on the location and the individual property. Still, it suggests that many homeowners may have significantly more wealth tied up in their homes than they realize.

Home equity is generally calculated by taking your home's current market value and subtracting your remaining mortgage balance.

For example, if your home could sell for approximately $700,000 and you still owe $300,000 on your mortgage, you have roughly $400,000 in equity before accounting for commissions, closing costs, and other expenses associated with selling. Even after those costs, you may have a substantial amount of money available for your next move.

How Can Your Equity Help With Your Next Move?

1. You may be able to make a larger down payment.

A larger down payment reduces the amount you need to borrow. This can help lower your monthly mortgage payment, which may be especially valuable in today's higher-interest-rate environment.

Instead of looking only at the price of your next home and today's mortgage rate, it is important to calculate how much of your proceeds from selling your current home can be applied toward the next purchase.

2. You may even be able to buy your next home with cash.

If you are downsizing or moving to a more affordable area, the equity from your current home could potentially cover a significant portion—or even all—of your next home's purchase price.

According to National Association of Realtors data cited in the article, 26% of repeat buyers purchased a home with cash in July 2026.

3. Remodeling your current home may be another option.

Perhaps you love your neighborhood and school district but need a better layout or more functional space. Depending on your situation, you may decide that renovating your current home makes more sense than moving.

Your home's equity could potentially help fund improvements such as a kitchen renovation, bathroom updates, a finished basement, or improvements to your main-floor living space. Of course, if you access your equity through financing, you should carefully consider the interest rate and repayment terms.

Your Online Home Estimate May Not Tell the Whole Story

It is important not to make major decisions based solely on an automated online home valuation.

Two homes of similar size in the same neighborhood can have very different market values depending on their updates, lot location, school district boundaries, basement, garage, condition, and many other factors. Just because your neighbor's home sold for a certain price does not necessarily mean your home would sell for the same amount.

If you are considering your next move, don't automatically conclude, "Mortgage rates are too high, so I can't move."

Instead, start by finding three important numbers:

• Your home's estimated current market value

• Your remaining mortgage balance

• Your estimated net equity after selling costs

Once you understand these numbers, you can better compare your options. You may discover that moving up to a larger home, downsizing to a more manageable property, purchasing with cash, or remodeling your current home is more realistic than you expected.

Having substantial equity does not eliminate every challenge in today's housing market. But it does mean you are not starting from zero when planning your next move. You may be able to use the wealth you have already built in your current home to create more options for the future.

If you are wondering what your home may be worth today, how much equity you may have, or how to connect selling your current home with buying your next one, please contact us. We can analyze local sales data, estimate your potential net proceeds, and help you explore the most realistic strategy for your next move.

ChicagoBDB LLC | Chicago BokdeokbangPlatinum Partners RealtorsSang Han, RealtorIL Licensed Realtor | License #475.179051