When you purchase a home with a mortgage, the payment will include principal and interest. The principal is applied to the purchase price and is your "Equity" in the home. For the first few years of your mortgage, the lending entity will be collecting more interest than principal but as time goes on, more principal is applied. Here is a great amortization schedule calculator that you can use to see how your equity increases over the life of your loan. You can also plug in numbers to see how paying a little more each month affects your equity. Click here to view your amortization schedule: http://bit.ly/2bAdaBM