What Every Homeowner Should Know About Their Equity

According to Keeping Current Matters knowing your home equity is crucial—it's essentially the first key to unlocking your future housing possibilities. With the recent surge in home prices, you might be surprised to find that your equity is significantly higher than expected.

Here’s a closer look at why understanding your equity is vital if you're considering capitalizing on your property's value for your next purchase.

Understanding Home Equity
Home equity represents the value of your ownership stake in your property, calculated by subtracting the amount you owe on your mortgage from the current market value of your house. For instance, if your home is valued at $400,000 and your mortgage balance stands at $200,000, your equity would be $200,000.

Recent studies from sources like the Census and ATTOM reveal that many Americans have substantial equity. Surprisingly, over two-thirds of homeowners have either fully paid off their mortgages or possess at least 50% equity in their homes.

Leveraging Your Home Equity
Today's market conditions mean many homeowners see a significant return on their investment upon selling. With considerable equity, you wield a powerful tool to propel you into your next home.

What to Do Next
If selling your house is on your mind, the first step is to determine how much equity you have. This will shape your selling strategy and potential financial gains. Collaborating with a real estate agent, alongside consulting tax professionals or financial advisors, will offer clarity and tailored advice, helping you navigate the specifics of your situation.

Bottom Line
As home prices have climbed, so likely has your home equity. Engage with a Indigo Skye Group to discover the exact value of your equity. Armed with this knowledge, you can approach the sale of your home with confidence and strategic foresight.

Source: keepingcurrentmatters.com