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Build Home Equity Faster in Lake Oswego: 7 Smart Strategies

Real Estate October 7, 2025

Building home equity is a key financial goal for many homeowners in Lake Oswego, one of my favorite towns located in the Portland metro area. Increasing your home equity not only enhances your financial stability but also provides opportunities for future investments. Here are some effective strategies to build home equity faster.

Make Larger Mortgage Payments

One of the most straightforward ways to build equity is by making larger mortgage payments. By paying more than the minimum required each month, you reduce the principal balance faster, which in turn increases your equity. In Lake Oswego, where property values are generally high, even small additional payments can significantly impact your equity over time. Consider setting up bi-weekly payments instead of monthly ones to make an extra payment each year, accelerating your equity growth.

Opt for a Shorter Loan Term

Choosing a shorter loan term, such as a 15-year mortgage instead of a 30-year one, can help you build equity more quickly. Although the monthly payments are higher, a larger portion goes toward the principal, reducing the balance faster. In Lake Oswego, where the real estate market is competitive, this strategy can be particularly beneficial for those looking to maximize their investment in a shorter period.

Invest in Home Improvements

Strategic home improvements can increase your property’s value, thereby boosting your equity. Focus on upgrades that offer a high return on investment, such as kitchen remodels, bathroom renovations, or energy-efficient installations. Buyers appreciate modern and sustainable features, these improvements can make your home more appealing and valuable.

Refinance to a Lower Interest Rate

Refinancing your mortgage to secure a lower interest rate can reduce your monthly payments, allowing you to allocate more funds toward the principal. This strategy can be particularly effective when interest rates fluctuate. By keeping an eye on market trends and refinancing at the right time, you can accelerate your equity growth while enjoying lower overall interest costs.

Make Lump-Sum Payments

Whenever possible, make lump-sum payments toward your mortgage. This could be from a work bonus, tax refund, or any other unexpected windfall. In Lake Oswego, where the cost of living is relatively high, taking advantage of these opportunities can help you pay down your mortgage faster, increasing your equity more rapidly.

Avoid Private Mortgage Insurance (PMI)

If you can make a down payment of at least 20%, you can avoid paying private mortgage insurance (PMI), which can save you a significant amount of money each month. In Lake Oswego, where home prices are substantial, avoiding PMI can free up funds to pay down your principal faster, thus building equity more quickly.

Choose a High-Growth Neighborhood

Investing in a property located in a high-growth neighborhood can naturally increase your home’s value over time. Areas like First Addition and Evergreen, (to name a few), are known for their desirable locations and amenities. As Lake Oswego neighborhoods continue to develop and attract buyers, property values are likely to rise, enhancing your equity without additional effort.

Maintain Your Property

Regular maintenance and upkeep can prevent your property from losing value. In this part of Oregon, where the climate can be wet and variable, ensuring that your home is well-maintained can protect its value. Simple tasks like cleaning gutters, repairing leaks, and maintaining landscaping can preserve your property’s condition and, by extension, its market value.

Rent Out a Portion of Your Home

If your property allows, consider renting out a portion of your home, such as a basement apartment or an accessory dwelling unit (ADU). This can generate additional income, which you can then use to pay down your mortgage faster. In Lake Oswego, rental demand is strong, this strategy can be an effective way to increase your equity while also providing a steady income stream.

Stay Informed About Market Trends

Keeping abreast of the local real estate market can help you make informed decisions about your property. Understanding when to refinance, invest in improvements, or sell can significantly impact your equity. In Lake Oswego, where the market can be dynamic, staying informed ensures that you’re well-positioned to take advantage of opportunities as they arise.

Ready to Build Your Home Equity?

By using these smart strategies, you can boost your home equity faster. Whether you're making upgrades or managing your mortgage wisely, each step brings you closer to your financial goals. If you're ready to take the next step, Laurie Bornstein is here to help. Contact her today to start building your equity with expert guidance tailored to Lake Oswego, OR.

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