Leverage your Home Equity
Owning a house is one of the greatest benefits of homeownership. As time passes, you gain equity in your home by steadily paying off your mortgage. Equity is the value of your home minus the debt on it, and can be tapped into when looking to purchase another property. According to Bankrate, equity is best described as "the difference between what your house could potentially sell for and how much you owe on it". In other words, it's an important asset that homeowners should understand and leverage when they're ready to move up in the housing market.
“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 are often not aware of the equity they have built up over time. With accrued home equity, homeowners can gain a sense of financial stability and even leverage that money to help purchase their next home. As time passes, homeowners can build up more equity in their homes.
If you're looking for ways to fund the purchase of your next home, you might consider tapping into the equity in your current residence. To find out how much equity you have, fill out our form and take the first step toward selling your house. We'd love to help you access this potential source of sale funds.