| HOW SELLERS CAN USE THEIR EQUITY TO BUY THEIR NEXT HOME |
| One of the biggest financial advantages of owning a home is the amount of equity you build up over time. This happens as you pay off your mortgage and as your home’s market value may increase. Right now, homeowners across the country have at their disposal record amounts of home equity. If you’re a homeowner who’s thinking of selling, the home equity you have could be a game changer. Instead of wondering whether you should move, you may realize there’s no good reason you shouldn’t enter the market right now. |
| What exactly is home equity? To calculate your home equity, take the figure for how much your home is worth on the market today, and subtract the amount of money you still owe on your mortgage. This is listed as the “remaining principal balance” on your monthly mortgage statement. Home equity builds up as you pay off your principal each month, and as your home may increase in value, as homes tend to do, over time. |
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| How much equity do U.S. homeowners have? Recent data from the U.S. Census Bureau revealed more than two out of three homeowners have at least 50% equity in their homes. That means that if they sold their homes, they would have at their disposal at least half of the selling price—less closing costs, of course. One major national real estate data firm reported the average American homeowner has built up $311,000 of home equity. |
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| What home equity can do for you when you sell. When you put your home on the market, the amount of home equity you’ve built up can really help—by making it possible for you to come up with a larger down payment. This will result in a lower monthly mortgage payment and might even enable you to get a mortgage at a lower rate. You can also use some of that equity to pay for moving expenses and upgrades to your new home. If you’re downsizing, your home equity could provide you with a substantial down payment. |
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| How to find out how much home equity you may have. To discover the amount of equity you may have in your home, contact a real estate agent. Ask for a professional equity assessment report (PEAR) to see how much home equity you may have. Then call or email me as your trusted mortgage advisor about your options to use your home equity to fund your next home purchase. You may be surprised at how much more affordable that move might be. |
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.
