The 'Equity Home' to Buy Your Next Home

Dear home buyer,

Let's start with a helpful definition:

What is an equity home?

At Nuhom, we define the 'equity home' as a home you buy which appreciates in value over time. This doesn't have to be your first home purchase, but it certainly can be. That appreciation in value is your equity and you can access it in three ways:

  1. Sell your home

  2. Do a cash-out refinance with a bank or lender

  3. Utilize a home equity line of credit (HELOC) with a bank or lender. Many homeowners use this equity to purchase their next home

Home Equity = (Home Value) - (Mortgage Balance)

The two best ways to create equity or value is:

  1. Buy your home and allow the market over time to appreciate

  2. Invest in your home with needed or desired updates

With either approach, time is your friend, but only if you start early. We encourage home buyers to think early and start early.

We have watched many of our home buyers and friends buy their first home between the ages of 25-35. Today, they have benefited from the home appreciation over time. Here are a few of those examples:

Home Owner 1

Nuhom - Revere, MA

City: Revere, MA

Type of home: Condominium

Year Purchased: 2015


  • Purchase Price: $290,000

  • Downpayment at time of purchase: 10% or $29,000 plus closing costs

  • Mortgage Balance: $261,000

  • Mortgage Payment: 3.8% fixed interest rate; a $1,216 monthly mortgage (principal & interest)


  • Current Estimated Value: $485,000

  • Current Mortgage Balance: $234,826 after making $72,969 in mortgage payments (principal & interest)

Over a 5-year horizon, less their original downpayment investment of $29,000, these 2015 home buyers have gained $221,174 in home equity.

This equity is in the home and can be utilized one of the three ways stated above.

Home Owner 2