Are you thinking about selling your home and moving to a new one? Understanding and leveraging your home equity could be the secret ingredient to making that dream a reality. Let’s explore what home equity is, how it grows, and how it can be used to fund your next home purchase.
Demystifying Home Equity
Home equity is the difference between the current market value of your home and the outstanding balance on your mortgage. It represents your ownership stake in the property. As you pay down your mortgage and your home’s value increases, your equity grows. This growth offers financial security and stability to homeowners.
The Surprising Amount of Equity Most Americans Have
Recent data from the U.S. Census Bureau and ATTOM reveals that the majority of Americans have a significant amount of home equity (see graph below). You might be surprised to learn just how much equity you’ve accumulated over time.
The Benefits of High Home Equity
Having substantial home equity offers several benefits. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, explains that high equity levels provide financial security for millions of families and reduce the likelihood of another housing market crash like the one experienced in 2008.
Leveraging Home Equity for Your Next Home Purchase
When it’s time to sell your current home, your accumulated equity can play a pivotal role in funding your next home purchase. By tapping into your home equity, you can potentially afford a larger down payment, secure a better mortgage rate, or even opt for a more desirable neighborhood.
Planning Your Next Move with Home Equity in Mind
To make the most of your home equity, it’s essential to work with a trusted real estate advisor. They can help you determine the current value of your home, calculate your equity, and guide you through the process of selling your house and purchasing your next dream home.
Understanding and leveraging your home equity can be a game-changer when it comes to buying your next home. By familiarizing yourself with the concept, tracking your equity growth, and working with a knowledgeable real estate advisor, you’ll be better equipped to make informed decisions and turn your dream of a new home into a reality.
Unlock the Potential of Your Home Equity
Don’t let your home equity remain untapped. By selling your house and capitalizing on your equity, you can make the process of purchasing your next home smoother and more affordable. Reach out to a trusted real estate advisor today to discover how much home equity you have and start planning your future with confidence.
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