Homeownership is one of the most important tools Americans can use to build wealth. Today we’ll dive a little deeper into the ways you can pull this off.
Want to sell your home? Get a FREE home value report
Want to buy a home? Search all homes for sale
Today I wanted to take a moment to talk about homeownership and building wealth.
Today I wanted to take a moment to talk about homeownership and building wealth.
The number one ingredient to this is price appreciation. This past year, we’ve seen about a 5.8% increase in values. Because of this, your home equity gets greater. The second ingredient is paying down your loan. This is done over time as you make payments; part of it goes to principal reduction.
Another way people do this is by refinancing their homes. With the equity built thanks to recent increases in appreciation, many homeowners are refinancing their home and going from a 30-year mortgage to a 15-year mortgage, allowing you to pay off that mortgage much quicker.
Homeownership is the American Dream.
Homeownership is obviously the number one American Dream. CoreLogic recently did a study showed that any equity that's 20% or greater equity in a home is significant equity, and the majority of people don’t think they have significant equity in their home. In reality, close to 73% of these people have significant equity in their home.
When necessary, you can use that home equity to take out a home equity line of credit. This is the difference between what is owed on your home and the value of your home—you can use this as a line of credit. You can use this loan for things like home improvements or your kids’ college.
If you’re interested in learning your home’s current value to get a better picture of your equity, give me a call or send me an email soon. I’d be more than happy to help you out in any way I can.
If you’re interested in learning your home’s current value to get a better picture of your equity, give me a call or send me an email soon. I’d be more than happy to help you out in any way I can.
