Mortgage Glossary
Appreciation
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Appreciation is the increase in a property's value over time, building the owner's equity without any payment toward principal.
What Appreciation means
Homes appreciate from market demand, inflation, neighborhood improvements, and renovations. Appreciation is not guaranteed and varies by location and cycle. Combined with principal paydown, it is the main way homeowners build wealth.
Florida example
A homeowner who paid $240,000 for a Tampa house in 2019 saw it appreciate to roughly $360,000 by 2024, adding about $120,000 in equity from market gains alone.
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