As a homeowner, one of the advantages you enjoy is the opportunity to build equity over time. This equity can be tapped into when you sell your property to fund your next home purchase. However, before using your equity, it’s essential to understand what it means and how it accumulates. Bankrate provides a simple definition, stating that:
“Home equity refers to the value of your home that you’ve paid off, which is essentially your share of the property, as opposed to the lender’s. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances.”
If you’ve owned your home for an extended period, you may have unknowingly accumulated significant equity. Recent data from the U.S. Census Bureau and ATTOM reveals that most Americans have substantial home equity.
Having substantial equity in your home is beneficial in many ways. Rick Sharga, the Executive Vice President of Market Intelligence at ATTOM, emphasizes the importance of record-level equity in providing security for families and minimizing the risk of another housing market crash similar to 2008.
Additionally, as you continue to own your home, your equity grows, providing financial stability. And when you’re ready to sell your home, this equity can go a long way in helping you finance your next property purchase.
In conclusion, selling your home and leveraging your equity can simplify your next home purchase. Contact me, your real estate professional, today to determine how much equity you’ve built up and start planning your next move.