Tori's Tips

Future Home Owner Series (BLOG 1)

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?

  1. Increase in home value based on market conditions. Buy homes in areas that are known to appreciate. Location, location, location!
  2. Home improvements increase the value-new roofs and HVAC units add value, paint and flowers do not.
  3. Making monthly mortgage payments lowers the mortgage balance.

WHY DOES YOUR HOME’S EQUITY DECREASE?

  1. Market conditions may lower the value
  2. Lack of general maintenance decreases the value-don’t let these items pile up!
  3. “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