If you sell your house, leverage your equity
Being a homeowner has the advantage of building equity over time. You can use equity to purchase your next home by selling your house. Before you can put it to work, it is important to understand what equity is and how it grows. Bankrate describes it as follows: “Home equity is the amount of your home that you have paid off. In other words, it is your stake in the property and not the lender’s. Home equity is simply the value of your home less any outstanding loans or mortgages. According to data from the U.S. Census Bureau, and ATTOM, most Americans have a large amount of equity (see graph below). This is a huge benefit for homeowners in many ways. Rick Sharga, ATTOM’s Executive Vice President of Market Intelligence, explains that record levels of equity provide security for millions of families and reduce the risk of another housing market crash. Over time, your equity will grow. You can use that money to pay for your next home, as well as financial stability, by owning your house. Bottom Line: Selling your house and leveraging equity can make it easier to purchase your next home. Talk to a trusted advisor about your home equity and begin planning your next move.
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