How long until you're building equity in your home?

You start with the equity from your down payment, then add to it as you pay down principal and as the home's value changes. In the early years of a loan, most of your payment goes to interest, so equity from principal builds slowly at first. Equity isn't guaranteed. You can also have negative equity in a declining market. With new construction, equity typically rises after the subdivision stops building, and with pre-owned homes, equity can be gained more confidently when homes are remodeled. Equity is typically the long game in homeownership.