Homeowners, what is the one thing that has rapidly increased for you this year? It’s your home equity. Home equity is a powerful asset and it is a big component of homeownership. However, most homeowners are unaware of how much equity they have or how they can use home equity to build their net worth.
Hi, I’m Terry Tucker with eXp Realty. I love helping people sell and buy homes right here in the San Ramon Valley and all over the San Francisco Bay Area!
Before we look at the benefits of home equity, let’s break it down. Home equity is the portion of your home that you own outright. It is subtracting your mortgage balance from the home’s current market value. Let’s say your home is worth $500,000. If you were to go to market and sell your home for fair market value or $500,000, you would have $250,000 in equity or cash once you paid off your mortgage loan. According to Corelogic Homeowner Equity Insights, U.S. homeowners with mortgages have seen their equity increase at about 9.6% since 2023. This is partially due to the home prices climbing in recent years. So as a homeowner why is building home equity so important? First, it means you have a source of income. Most homeowners are able to borrow against their equity for nearly any reason such as home improvements or college tuition. This is generally done with a home equity line of credit.
You can also build long-term wealth over a period of time because property values usually appreciate in value and don’t decrease. But even more importantly, you are more likely to make a profit when you sell your home and then use the profits from the sale to purchase another home, pay off debt or invest elsewhere. A home is one of the few types of collateral
that has the potential to increase over time. As always it is important to weigh the pros and cons of accessing your home equity and speak with a well-qualified lender and real estate agent.
If you have any questions or would like more information on the inventory in your area, along with pricing and strategy, please reach out to me. Working with a knowledgeable agent can help you navigate the market conditions effectively and will benefit you down the road with your largest long term investment. I’m a seasoned East Bay expert with a 5-star rating. I will help you navigate the market and make it happen, whether that’s selling or buying or both!
And if you or someone you know needs to sell a home, ask me about my home-selling plans. I took the pain out of negotiating with a Realtor and made it super simple. Really! Choose silver, gold or platinum – pick your plan and pick your price. Terms do apply. I’m Terry Tucker and I’m a home selling expert. Let’s get you going . . . call me today!
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