What is equity?
Home equity is defined as the market value (the price a buyer will pay) minus what you owe on your loan.
MARKET VALUE – LOAN BALANCE = YOUR HOME EQUITY
In 2024, U.S. homeowners with mortgages experienced a modest increase in home equity, averaging a gain of approximately $4,100 per borrower.
Despite the slowdown in 2024, homeowners have accumulated substantial equity over the past five years, with average gains nearing $150,000. This accumulated equity continues to serve as a significant financial asset for many households.
To find the market value of your home, contact us or fill out the form, and we will get you that number.
What can I do with my equity?
When you know what your home equity is, you will be able to explore different opportunities you have available to you. Here are a few opportunities some of our clients have taken advantage of:
The Johnsons sold their home and were able to purchase a bigger house for their family. Each kid was able to have their own room and Mrs. Johnson’s kitchen was what dreams were made of. Having a larger down payment (thank you, home equity) + the low-interest rates, their monthly house payment was not significantly higher than before.
The Smiths refinanced their mortgage and got some of the equity they had in CASH. With this cash, they purchased an investment property to continue to build their wealth. They are now building equity in two homes + have cash flow coming from that property monthly. You could also use that cash to update your house (which could also increase your market value, which in turn could increase your equity). You could even use that cash to pay off other debts, etc.
The Bradys sold their investment property, and with the equity (read cash), they received from the sale, they were able to strategize to purchase multiple investment properties.
Now, they are building equity in multiple properties and have an even higher monthly cash flow.
The opportunities are endless!
We are here to talk through your options with you, so you can have peace of mind knowing you are making the best decision for your family.
