finance: As Home Equity Rises, So Does Your Wealth
- 10/03/21 05:51 AM
Homeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), its clear that being a homeowner has considerable benefits both emotionally and financially. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your wealth comes in the form of equity. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. The best thing about equity is that it often grows without you even realizing it, … (3 comments)
finance: Should I Move or Refinance?
- 05/22/21 05:25 AM
The level of equity homeowners have is at an all-time high. According to the U.S. Census, over 38% of owner-occupied homes are owned free and clear, meaning they don't have a mortgage. Those with a mortgage are seeing their equity skyrocket too. Every time real estate values increase, homeowners get a dollar-for-dollar gain in their home equity. According to the first-quarter 2021 U.S. Home Equity Report from ATTOM Data Solutions: 17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market … (12 comments)
finance: Should We Fear the Surge in Cash-Out Refinances?
- 03/30/21 06:39 AM
Freddie Mac recently released their Quarterly Refinance Statistics report which covers refinances through 2020. The report explains that the dollar amount of cash-out refinances was greater in 2020 than in recent years. A cash-out refinance, as defined by Investopia, is: a mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash. The Freddie Mac report led to articles like the one published by The Real Deal titled, House or ATM? Cash-Out Refinances Spiked in 2020, which reports: Americans treated … (3 comments)
finance: Should I Wait for Lower Mortgage Interest Rates?
- 02/15/21 06:57 AM
Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you're ready to buy a home. According to Greg McBride, Chief Financial Analyst for Bankrate: As vaccines become more widely available and a return to normal starts to come into view, well see mortgage rates … (2 comments)
finance: Why Do I Need Earnest Money?
- 11/24/20 07:06 AM
When you’re shopping for a home, it can feel like you’re hemorrhaging money. You’ve got all sorts of things to pay for, from loan application fees to home inspections, so when the issue of earnest money comes up unexpectedly, it can be a “slam on the brakes” moment. Now that the days of low to no down payments are largely past and markets everywhere seem to be running thin on inventory, earnest money may well be the most important negotiating tool you’ve never heard of. What Is Earnest Money? When you make an offer on a home, part of that offer can … (2 comments)
Homeownership is still a crucial part of the American dream. For those people who own a home (and those looking to buy one), its clear that being a homeowner has considerable benefits both emotionally and financially. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your wealth comes in the form of equity.
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