1. Home equity, the amount of your ownership, can be an indicator of financial progress.

Equity is calculated by subtracting the mortgage amount owed from the current market value of the home. A home worth $200,000 with an $80,000 mortgage would have equity of $120,000, or 60 percent of the home’s value. Build equity through shorter mortgages and additional principal payments.

YOUR SITUATION: Do you make additional payments toward the loan principal to build equity? What budget items might be reduced to pay down your mortgage? Are there improvements you might make to increase the market value of your home?