Hesitant about selling your house? While affordability is improving this year, it’s still a concern for many. However, gaining a clear understanding of your home equity could significantly simplify your decision-making process. As explained in an article by Bankrate:
"Home equity represents the difference between your home’s value and the outstanding balance on your mortgage. Essentially, it's the portion of your home that you've paid off."
Initially, your equity starts with your down payment and grows as you pay down your mortgage and as your home's value appreciates over time. Think of equity as a straightforward equation: it's your home's current value minus your outstanding mortgage balance.
And the kicker? Your equity has likely increased more than you realize in recent years due to soaring home prices.
So, if you're contemplating a move, your home equity could be a significant asset.
According to CoreLogic, "the average homeowner with a mortgage still has over $300,000 in equity".
Data from the Census and ATTOM shows that approximately 70% of homeowners either own their homes outright or have at least 50% equity.
After selling your house, leveraging your equity can facilitate your next home purchase. Here are two strategies:
To determine your home equity, seek a Professional Equity Assessment Report (PEAR) from a trusted real estate agent.
In summary, if you're planning a move, tapping into your home equity can be a game-changer. Reach out to a local real estate agent to assess your equity and explore how it can facilitate your next home purchase.
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