Mike and Jennifer Rigley (buyers) 916.378.4671 / (sellers) 916-660-5823 Info@RigleyRG.com
What’s My Carmichael Home Worth?
Please call us to discuss your potential Home Value in Carmichael, CA 916-660-5823. Click here to use our FREE Online Home Value Estimator. Call for a FREE consultation
When delving into the world of real estate and investment property, there are many terms that will come up that require further explanation. Whether you've never heard the phrase 'home equity' before or you have a little familiarity, here are the ins and out of what it means and how this asset can help your financial outlook.
All About Home Equity
Essentially, home equity refers to your portion of the value of your home, and the amount of this figure is important because it is included among your assets when determining your net worth. If this sounds confusing, think of it this way: if you have completely paid off the cost of your home, the value of your home equity is this total amount. Of course, because most people seek a lender to borrow money from when they purchase a home, their home equity would consist of their down payment and whatever amount they've paid down on the mortgage since purchase.
An Example Of Home Equity
To provide further clarification, let's use the example of a house that has been purchased for $300,000. In the case that a down payment of 20% has been provided at the time of purchase, the equity in the home would be $60,000. Since this amount is the percentage and cost of the house that's been paid down, this is the amount of the house that is actually owned and this will be figured among an individual's assets.
How Home Equity Works
As you pay the amount that you owe on your home each month, you are paying off your total debt and thereby increasing your equity. Since this amount of money is considered an asset that belongs to you, it can be used down the road to buy another home or invest in other important things like education or retirement. While paying off the amount owed on a home is a considerable investment, if the value of your home increases, this means that you'll still owe the same on it but your home equity will have automatically increased.
As an asset that is part of your financial net worth and can be used down the road to fund other investments, home equity is a very useful term to know when it comes to purchasing a home. If you're on the market for a home and are considering your options, you may want to contact one of our local real estate professionals for more information.
To stay up to date with Carmichael Real Estate news log on to www.rigleyrealtygroup.com
Are you a local hero looking to buy or sell a home in Carmichael? CLICK HERE to find out about the Home Benefits for Heroes savings program NOW! Former and active Military, law enforcement, firefighters, health care providers, first responders, and teachers are but a few of the everyday heroes that may be eligible for home buying and home selling discounts through Home Benefits for Heroes
Looking for a top Carmichael realtor? Call the Rigley Realty Group today at 916-378-4671 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.
Comments(0)