Right now, the U.S. housing landscape shows signs of stabilization. The average home value sits around $357,445 (per Zillow's Home Values Index), with modest year-over-year growth of about 0.2%. Other sources indicate median sales prices in the $396,800–$423,261 range in recent months, reflecting a balanced market where prices are holding steady or rising slowly (forecasts suggest 0–2.2% national growth in 2026). Mortgage rates for a 30-year fixed loan are hovering in the mid-6% range—around 6.09% recently—making homeownership more approachable than in recent high-rate years, while still rewarding those who prioritize low-cost, efficient loans.
This environment creates opportunities for building equity, the key driver of generational wealth in real estate. Equity is the portion of your home you truly own—your home's value minus what you owe on the mortgage. Over time, it grows through appreciation, principal payments, and strategic decisions. Here's how mortgages fit into legacy planning, with practical strategies tailored to our markets.
The subtle nuances of mortgage selection matter enormously for long-term wealth. Opt for a low-rate, fixed-term loan that minimizes interest costs and accelerates principal reduction. For example:
In stable or modestly appreciating markets like parts of Colorado and Texas, consistent payments turn your home into a growing asset. Borrowers who focus on these details often see their equity rise steadily, creating a nest egg for heirs or future investments.
With national home values showing flat-to-modest gains, focus on markets with strong fundamentals—job growth, population influx, and quality of life. In Texas, areas like Dallas continue to attract families, supporting steady equity buildup. Colorado's balanced growth in places like Denver offers similar potential.
The real magic happens over decades: Pay down your mortgage while the property appreciates modestly. A home purchased today could double in value by the time your children or grandchildren inherit it, especially if you've reduced the loan balance significantly. This equity becomes a tax-advantaged inheritance or a source for down payments on the next generation's homes.
Florida presents unique considerations due to rising homeowners' insurance costs driven by weather risks and other factors. While recent reforms have brought some relief—such as average premium reductions of around 8.7% for many Citizens Policyholders starting in 2026—insurance remains a significant expense in high-risk areas.
To weather these rises and still build generational wealth:
Honest planning here ensures your Florida home remains a legacy asset, not a financial burden. Many of my clients have successfully navigated this by pairing a low-cost mortgage with proactive risk management.
Why This Matters for Your Legacy
Generational wealth isn't about getting rich quickly—it's about intentional choices that compound over time. A well-structured mortgage helps you build equity reliably, turning homeownership into a family foundation. Whether you're a first-time buyer, refinancer, or investor, the goal is the same: a loan that fits your life, reduces unnecessary costs, and positions your property to appreciate and pass down value.
If you're in Colorado, Texas, or Florida and thinking about how your mortgage can support generational wealth, I'd love to talk. I enjoy building these relationships over the phone, explaining the nuances transparently, and helping craft a plan that truly fits.
Reach out via efficientlending.net or connect on X at @mike_lending.
For more stories of real people building legacies through real estate, check out my podcast on all major podcasting platforms, Mosaic: The Stories of Real Estate.
Let's build something lasting together.
Mike Nelson, CEO - Efficient Lending, Inc
NMLS: 1876539 NMLS: 1314188
