Increasing home values have been creating a ruckus in the market lately, and this speedy hike has created emphasis on on how fast and continuous the home prices are rising. However, the same price acceleration offers a pleasant advantage to homeowner’s equity.
Home equity is the difference in between the home’s fair market value and the outstanding balance of the all loans on the same property. Therefore, when a homeowner settles mortgage loans, the equity on their home further climbs each time the value of their homes go up.
From the recent reports in Equity Report from ATTOM Data Solutions, “13.9 million U.S. properties in Q2 2018 were equity rich — where the combined estimated balance of loans secured by the property was 50 percent or less of the property’s estimated market value — representing 24.9% of all U.S. properties with a mortgage.”
In perspective, it translates that almost a quarter of Americans with mortgages may now sell their homes and gain a substantial amount for down payment for their next home. Numerous homeowners will now be capable of selling their present homes for an amount off their equity to settle present high-interest credit cards and even assist with their children’s tuition costs.
If you are a homeowner whose ready to take advantage of this rising equity, let’s have a coffee together and discuss your options.
Source: Keeping Current Matters