Your Equity Could Make a Move Possible

Many homeowners feel stuck between a rock and a hard place due to current higher mortgage rates compared to their existing ones. If you're in the same situation, there's good news. Your home equity might be the key to making your next move feasible despite higher borrowing costs.

Understanding Home Equity

Home equity can be thought of as a simple equation. As Freddie Mac explains: 

"...your home's equity is the difference between how much your home is worth and how much you owe on your mortgage."

Your equity increases as you pay down your mortgage and as home prices rise. With the recent surge in home prices, you likely have more equity than you realize.

Recent data from the Census and ATTOM shows that over two-thirds of homeowners have either completely paid off their mortgages or have at least 50% equity:

This means most homeowners currently have substantial equity.

Here are a few ways you can use your equity:

1. Be an All-Cash Buyer: If you've lived in your current home for a long time, your equity might be sufficient to buy your next home outright, eliminating the need for a mortgage and avoiding higher interest rates.

2. Make a Larger Down Payment: Using your equity for a larger down payment reduces the amount you need to borrow, helping you manage the impact of higher mortgage rates.

The First Step: Determine Your Home Equity

To understand how much equity you have, you need two pieces of information: 

- Your current mortgage balance

- Your home's current market value

You can find your mortgage balance on your monthly mortgage statement. To determine your home's market value, you could pay for an appraisal or contact a local real estate agent for a professional equity assessment report (PEAR) at no charge.

Connecting with a trusted local real estate agent and calculating your equity is the first step toward making your next move possible.

In Conclusion

]If you're curious about how much equity you have and how it can facilitate your next home purchase, let's connect!

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