Home & Wealth | September 2024

September 14, 2024/
BUILDING EQUITY IN YOUR HOME COULD MAKE YOUR NEXT MOVE POSSIBLE  
  Are you a homeowner who wants to sell because you’d like to move up to accommodate an expanding family or downsize after the kids have moved out? Or are you looking for your first home or know someone who might be hesitant to move because the mortgage rate they might get today could be higher than if they wait? Fortunately, home equity can help current owners keep their future monthly mortgage payments within budget, and future homebuyers will be able to begin building equity rather than spending money on rent.
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What Is Home Equity? Mortgage giant Freddie Mac explains home equity as a simple equation. It’s the difference between how much your home is worth on the market now and how much you currently owe on your mortgage. When you buy a home, part of your monthly mortgage payment goes to building your home equity by paying down what you owe on the loan. When you sell, after you pay off the mortgage, you receive this money, plus your original down payment, plus the equity that built up as your home’s value grew.
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Two Out of Three Homeowners Have at Least 50% Equity in Their Homes. Recent statistics from the U.S. Census Bureau and Attom Data reports that 67.1% of homeowners—more than two out of three—have at least 50% equity in their homes. Almost 40% of homeowners own their homes free and clear, and more than 28% have a mortgage and have amassed more than 50% equity in their homes.   
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Here’s How It Works. When you sell your house, the equity you’ve built up can let you move without worrying that the current mortgage rate will take your monthly payment beyond your budget. Depending on your amount of home equity, that payment may even be less. Realtor.com reports that the typical home listing price is up 40% from only five years ago, and so many home sellers have “a healthy equity cushion.” Homeowners can use that equity to make a larger down payment and reduce the amount they need to borrow for the next home. 
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First, Find Out How Much Home Equity You Have. To figure out how much home equity you have, you’ll need to know: 1) your current mortgage balance; and 2) your home’s current value. You’ll find the mortgage balance—the amount you have left to pay on your mortgage—on your latest monthly statement. To find the current market value of your house, contact a local real estate agent, who can give you, at no cost, a professional equity assessment report (PEAR). Reach out to us to help you run the numbers. You may see that your next move is readily possible, thanks to the amount of home equity you didn’t know you had!
The Jim Passi Team at Citywide Home Loans proudly serves Illinois, Wisconsin, Michigan, Indiana, Georgia and Flordia. If you are looking to buy a home or refinance, we have you covered. Apply Now to get started.
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Jim Passi - Citiwide Home Loans

Jim Passi
Regional Manager
NMLS# 158000

1121 E. Main Street, Suite 121
St. Charles, IL 60174
Mobile: 847-899-1813
Email: jim.passi@alamedamortgage.com

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This testimony is from my

This testimony is from my experience being a first-time home buyer going through the process of purchasing a home with Jim Passi from City Wide home loans. Let me just start off by saying how reliable, courteous, genuine, informational and hardworking Jim Passi is. Jim is not like a lot of other loan officers. My house I purchased for under 160 grand, not a huge real estate deal. From experience with other loan officers they don’t want to deal with a smaller purchase or work on a loan that might be difficult. With our credit score being low and work history not at expectations I was almost positive I would have to wait a year or maybe two years before being approved and close on a house. I definitely had doubts that I would be a home owner, Jim worked hard and stayed in contact with us updating us almost every day of the process, even during evening hours and weekends during the stressful underwriting process. Communication is key and I give Jim a 5-star rating with that. I consider myself an average blue-collar hard-working guy that has experienced hardships during life. Jim was never turned away by the hardships, he was understanding of them and I feel like it made him work even harder to make this process a success.

I just successfully closed on a house with my fiancé. Jim did what I thought was impossible. Again, with our credit score being under 600 and spotty work history it was a difficult process that became a success with a lot of hard work. Jim also got me the best interest rate that was available. He was constantly checking the market and keeping me informed on what was available. He wanted me to take my time and make sure what rate was in our best interest. Jim has a cretin genuine care for his clients and speaking with him so much during this process I know he truly cares and wants to help people. Even after we closed Jim called and congratulated us with excitement. Jim made a dream come true for us that I was sure we would have to wait for. I’m just going to say if he made my dream come true with all the problems I had he can make a lot of others come true for any one in a similar situation. Jim Passi is highly recommended.

Tim A.