Top 3 Things You Need To Know About Equity

 Maybe your family is growing, or a new job is whisking you away to a new city. Equity can be your magical ally in this move! 

Let’s say your home is worth $220,000, and you’ve built $70,000 in equity. Sell it for its worth, and you’ll leave the closing table with a profit, though not the full $70,000 due to expenses like agent fees and closing costs. Still, you’ll have a solid profit to use for a large down payment on your next home. 

With this enchanted down payment, you can afford a larger, more expensive home with a smaller mortgage, leading to lower monthly payments. 

Equity = Home Value – Mortgage

If you owe $150K and your home is worth $200K, you have $50K equity. That’s some solid ground to stand on!

Paying down your mortgage

Home value rises

Equity can drop if your home value falls faster than you pay your mortgage.

The rest of this week, we will discuss the benefits of equity!

Equity is a cornerstone of the American Dream and one of the greatest perks of owning your own home!

You can tap into this when you sell your current home and upgrade to a larger, more luxurious one. Or, you can use that equity to enhance your home, pay off debts, or secure a comfortable retirement.