To sell or not to sell? Selling your home right now brings up a plethora of questions and you may find yourself torn. If one of the reasons you are on the fence is that you don’t want to take on a higher mortgage rate on your next home, you are not alone. However, understanding your equity may be exactly what you need to help you feel more comfortable making your move. Equity is a game changer.
That Thing Called Equity
Let’s get back to the basics, all! Equity is the current value of your home minus what you owe on the loan. Yes, there’s math, but it’s not too bad, right?
Recently, equity has been growing far faster than you may expect. Over the last few years, home prices rose dramatically, and that gave your equity a big boost very quickly. While the market has started to normalize somewhat, there’s still an imbalance between the number of homes available for sale and the number of buyers looking to make a purchase. Due to the high demand, prices are still on the rise, which is only adding to your home’s overall value.
How Equity Benefits You in Today’s Market
With today’s affordability challenges, that equity can be a game changer when you move. Let’s look at why.
According to a recent report, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity! That means roughly 70% have a tremendous amount of equity right now.
Once you sell your house, you can use your equity to help with your next purchase. You could use it as a down payment or even pay all in cash. That sounds amazing, no? If that’s true for you, you’d be able to avoid borrowing altogether, so you wouldn’t have to worry about today’s mortgage rates.
If you’re planning to make a move, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.