Leverage Your Equity When You Sell Your House

Owning a home can have the advantage of generating equity as time goes by, which can be utilized when selling the property to acquire a new one. However, it is important to comprehend the concept of equity and how it increases before making use of it. According to Bankrate, equity can be defined in the following manner:

“Home equity is the portion of your home you’ve paid off – in other words, your stake in the property as opposed to the lender’s. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances.”

Homeowners can reap multiple benefits from possessing substantial amounts of equity. According to Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, the high levels of equity in homes offer security to millions of families and decrease the likelihood of another housing market crisis similar to the one experienced in 2008. As time passes, the equity in your home continues to increase, providing not only financial stability while you are a homeowner but also serving as a significant source of funds to be utilized toward the purchase of your next property when you decide to sell.

Bottom Line

Selling your house and using the equity you have built up can simplify the process of paying for your next home. To determine how much equity you have and to start devising your next steps, it is recommended to connect with a reliable real estate advisor.

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