1200 miles of quality time with my 15-year-old “future homeowner” brought me back to the basics of real estate. Growing equity is one of the keys to building wealth. Step one: Buy a home!
According to The Currency, financial news, Americans now have 35 trillion dollars in home equity, which equates to about $315,000* per mortgage holder. For my “future homeowners’ who are reading this, home value – monies owed (mortgage, home equity loan, tax lein) = equity.
Whether you choose to leverage this equity or not, it is an important number to keep in mind for your overall financial health.
WHY DOES YOUR HOME’S EQUITY INCREASE?
- Increase in home value based on market conditions. Buy homes in areas that are known to appreciate. Location, location, location!
- Home improvements increase the value-new roofs and HVAC units add value, paint and flowers do not.
- Making monthly mortgage payments lowers the mortgage balance.
WHY DOES YOUR HOME’S EQUITY DECREASE?
- Market conditions may lower the value
- Lack of general maintenance decreases the value-don’t let these items pile up!
- “Borrowing against your home” (taking out a home equity loan).
Let’s talk money!
I will help you calculate how much equity you have; you choose how to leverage it!
GO DEACS
Berkshire Hathaway HomeServices Carolinas Realty
Tori Boysen
Broker
336-345-3499
tori.boysen@bhhscarolinas.com
www.toriboysen.com
