A home is a primary residence you own. Home mortgage payments, property taxes, insurance, and maintenance costs are a large portion of your overall living expenses. Over time, the value of your home may appreciate which will add to your net worth. In addition, as you pay off your mortgage, your net worth also increases.
You can take advantage of your home equity if you sell your home or refinance it. If you don't sell your home or refinance, your mortgage payments will probably become a smaller and smaller portion of your expenses as you grow older.
An asset is an asset that you are willing to sell to finance your plan or that produces income for you. Assets do not have a “ready market” like investments. It may take months or years to sell them. If you are basing your plan on selling or receiving income from an asset, make sure you estimate that amount realistically.
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