Equity is a game changer for home owners looking to sell
You might be unsure whether to sell your home right now. You may not want to pay a higher rate of interest on your next house. What Equity Is and how It WorksEquity equals the current value of your house minus the amount you owe. Recent equity growth has been much faster than expected. Home prices have risen dramatically in the last few years and this has given your equity a huge boost. Although the market is beginning to normalize, the number and type of homes for sale still differs from the number of buyers. Prices are rising because of the high demand for homes. Rob Barber, CEO at ATTOM, a provider of property data, explains that equity levels were high during the recent recession, and are now going up and better than before. Here’s why. According to data from ATTOM, and the Census Bureau, nearly two thirds (68.7% of homeowners) have either paid off their loans or have at least 50 percent equity (see chart). You can use the equity you have built up after you sell your home to help you with your next purchase. You could use some (or all) of the equity to help with your next downpayment. You may be able to use the money to make a larger down payment for your next home. This will allow you to avoid having to finance as much. If that’s the case, you could avoid borrowing altogether, so you wouldn’t have to worry about today’s mortgage rates. You can find out how much equity you have by contacting a real estate agent. They will provide you with a Professional Equity Assessment Report. Contact a real estate advisor to find out how much equity you’ve built in your home and how it can be used to fund your next purchase.
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