Leverage Your Equity When Selling Your Home
One of the benefits of being a homeowner is that you build equity over time. When selling your house, that equity can be used toward purchasing your next home. Before you can put it to use, it is important to understand exactly what equity is and how it grows. Bankrate explains it like this:
“Home equity is the portion of your home you’ve paid off – in other words, your stake in 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.”
The majority of Americans Have a Large Amount of Equity
If you’ve owned your home for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below):
Having such large amounts of equity benefits homeowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, explains:
“Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”
Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell, that money could go a long way toward paying for your next home.
By selling your house and leveraging your equity, it can be easier to pay for your next home. Connect with the Just Say Home KC Team at 816-656-2816, to find out how much home equity you have and start planning your next move.