One of the biggest advantages of homeownership is building financial equity. Over the past few years homeowners have been sitting on accounts that have grown at a record rate. Increasing equity is a game changer. The last several years homeowners have increased their equity by hundreds of thousands of dollars. For example, if you bought your current home for $300,000 and have a current outstanding loan amount of $150,000. It is possible the homeowner could sell the home for $700,000 minus the closing cost of $50,000. This would give the seller equality of $500,000 to apply towards a new home. From this example it shows the equity is a big deal since many homeowners have paid off their mortgage or have at least 50% equity in their home. Having this type of equity growth can go a long way in helping a person make another move. Image if you were able to move forward as a cash buyer, this means you have no mortgage, no monthly payment and interest to mess with. Now you need to connect with a real estate agent and request professional equity assessment report. By taking these steps a homeowner may find out that they may have enough equity to buy their next home with cash or make a large down payment. In conclusion, homeowners’ equity has increased, and the number of cash buyers is increasing. By determining how much equity you have and talking through the process may fuel your next move
Show All Comments
Sort:
Fathom Realty - Lancaster, PA
Lancaster, PA Relo Specialist
My older clients who are downsizing, often want to purchase their replacement housing before selling their current house. We use Swing/Bridge Loans …..
Jan 21, 2025 07:34 AM
Comments(1)