Being a homeowner has numerous advantages, one of which is the ability to accumulate equity. You can utilize the equity from the sale of your current home to buy a new one. Nevertheless, you must first comprehend exactly what equity is and how it develops before you can use it. Here is how Bank rate describes it:
House equity, often known as your ownership interest in the property as opposed to the lender’s, is the percentage of your home that you have paid off. Home equity, in real terms, is the appraised worth of your house less any remaining loan and mortgage balances.
Majority of Americans Have a Large Amount of Equity
If you’ve owned your home for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below):
Homeowners gain from possessing so substantial wealth in a variety of ways. According to ATTOM’s Rick Sharga, Executive Vice President of Market Intelligence:
“Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”
Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell it, that money could go a long way toward paying for your next home.
By selling your house and leveraging your equity, it can be easier to pay for your next home. Connect with a trusted real estate advisor so you can find out how much home equity you have and start planning your next move.