HOME EQUITY IS UP 34%
One of the main ways to build wealth is the equity in owning a home. According to the CA Association of Realtors, home equity reached a new high this year, with US mortgage holders’ tappable equity up 34% in April year over year! The average homeowner gained $207,000 in equity over the past year!
What is equity? It’s your home’s fair market value, less any money you owe on the house.
When you first purchase a home, the amount of equity you have is what you put as your down payment. Then as you pay off your loan, the amount you pay toward the principal of your loan is added to your equity. There are three ways equity increases. Equity increases with each mortgage payment, market appreciation, and home improvements/renovations.
You can calculate your home equity by first determining the market value. Marcus or Ashley can find comparable sales for you, then subtract your remaining debt. When you are ready to sell your house, the equity will be paid to you in cash at closing after subtracting any closing costs.
Please let us know if you would like a market analysis for your current home or have any questions about buying a home!
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