Your Equity Could Make a Move Possible

Many homeowners looking to sell feel like they're stuck between a rock and a hard place right now. Today's mortgage rates are higher than the one they currently have on their home, and that’s making it harder to want to sell and make a move. Maybe you’re in the same boat. But what if there was a way to offset these higher borrowing costs? There is. And the money you need probably already exists in your current home in the form of equity. What Is Equity? Think of equity as a simple math equation. Freddie Mac explains: “. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.” Your equity grows as you pay down your loan over time and as home prices climb. And thanks to the rapid home price appreciation we saw in recent years, you probably have a whole lot more of it than you realize. The latest from the census and ATTOM shows more than two out of three homeowners have either completely paid off their mortgages or have at least 50% equity. That means the majority of homeowners have a game-changing amount of equity right now. How Your Equity Can Help Fuel Your Move After you sell your house, that equity can help you move without worrying as much about today’s mortgage rates. To give you some examples, here are a few ways you can use equity to buy your next home: Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much at today’s rates. The First Step: Determine How Much Equity You Have in Your Home Want to find out how much equity you have? To do that, you’ll need two things: The current mortgage balance on your home The current value of your home You can probably find the mortgage balance on your monthly mortgage statement. To understand the current market value of your house, you can pay hundreds of dollars for an appraisal, or you can contact an agent with The Kennedy Real Estate Group who will be able to present to you, at no charge, a professional equity assessment report. Once you’ve connected with a trusted local agent and run the numbers, you’re one step closer to making a move you may not have thought was realistic – all thanks to your equity.

Posted by Dan Kennedy on

Tags

Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.