Have you checked into your home equity lately? According to an article from the Washington Post, recent changes in the market mean that your equity could be higher than you think!
Home equity – which is defined as the difference between the balance on your mortgage and the market value of your home – is important for various reasons. Positive equity happens when the market value of your home is higher than the balance of your mortgage, and when you have a lot of high positive equity, you broaden your financial options.
For example, it’s easier for homeowners with positive equity to sell their home than homeowners with little or no equity – who will have a harder time selling without having a lot of cash to bring to the closing.
Fortunately, many Americans have been enjoying positive home equity, according to the Washington Post article. Recent home equity statistics from the article include the following:
– The Federal Reserve estimates that hold equity holdings nationwide are at $12.5 trillion – which has doubled from 2011 to the final quarter of 2015.
– About a million people who previously had negative equity crossed into the positive equity territory in 2015, according to estimates from CoreLogic.
– If home prices rise another 5% in 2016, home equity should rise significantly for about 850,000 homes.
If you’ve been thinking about selling your home, the current favorable home equity conditions could mean it’s the perfect time. And if you’re an active adult looking to sell your current home and buy a new home in a 55+ community in Maryland, The Villages at Two Rivers is your perfect choice!
If you find yourself with a positive home equity and decide to buy a new home, our new construction homes at The Villages at Two Rivers can help make the most of your buying decision. Our top notch builders have created one-of- a-kind, beautifully crafted single-family homes in our 55+community, specifically designed with our active adult residents in mind.
If you’re serious about selling and interested in finding out what your home equity is, the Washington Post article suggests several methods, including researching your home’s market worth on sites like Zillow, and compare that with your monthly principal balance on your mortgage. Your next step after figuring out your equity is to stop by The Villages at Two Rivers to take a tour of our beautiful new construction homes you could buy!
SOURCE: The Washington Post