Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since home prices have risen so much over the past few years, most people have much more equity than they may realize.
Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home.
Home Equity: What Is It and How Much Do You Have?
Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.
Recent data from the Census and ATTOM shows Americans have significant equity right now. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):
Today, more homeowners are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move.
In Conclusion
Understanding and managing your home equity is essential for leveraging your property's financial potential. You can make the most of your real estate investment by staying informed, monitoring your equity, and exploring strategic options. Remember that your equity is a valuable asset that can open up opportunities for financial growth and stability. Consult with a trusted real estate advisor for expert guidance on maximizing your equity and achieving your property-related goals.
Source: Keeping Current Matters. "What Every Homeowner Should Know About Their Equity." Keeping Current Matters, 5 Aug. 2024, www.keepingcurrentmatters.com/2024/08/05/what-every-homeowner-should-know-about-their-equity/.
Comments