<prompt> Human: I know Im looking at this from a very general view, and theyre are many factors involved, but whats the point of all this equity if we are paying hundreds of thousands in interest over the course of the mortgage? I purchased a home for 4.25 30 years interest rate, and if i recall correctly, ill be paying over 300,000 for interest. The home is 600,000. Fortunately I am renting it out so most of the mortgage is covered. I am contemplating selling due to this and other newfound knowledge of financialshome-ownership. Am I looking at this the wrong way E.g. even if my home shoots up 850K in the next few years - Id still be down 50K overall... right?  <response>: Equity is how much money you take with you when you sell the house minus selling fees. Equity can also be borrowed against. The faster you pay down the loan the less interest you will pay. 