Your Equity Could Make a Move Possible

Many homeowners looking to sell are feeling the pressure of today’s higher mortgage rates compared to the ones they currently have. It’s a tough spot to be in, and if you're in the same boat, you're not alone. But there’s a silver lining: your home equity.

What Is Equity?

Equity is essentially the difference between what your home is worth and what you owe on your mortgage. Over time, as you pay down your mortgage and as home prices rise, your equity increases. Given the significant home price appreciation in recent years, you likely have more equity than you realize.

A Wealth of Equity

Recent data from the Census and ATTOM shows that over two-thirds of homeowners have either completely paid off their mortgages or have at least 50% equity in their homes. This is a game-changer for many, providing a valuable resource to help offset higher borrowing costs if you decide to sell and move.

Leveraging Your Equity

So, how can this equity help you make a move despite higher mortgage rates? Here are a few strategies:

  1. All-Cash Purchase: If you’ve built up enough equity, you might be able to buy your next home outright, avoiding the need for a mortgage altogether. This removes the worry about current interest rates.

  2. Larger Down Payment: Your equity can be used to make a substantial down payment on your next home, reducing the amount you need to borrow and potentially lowering your interest rate.

Danielle Hale, Chief Economist for Realtor.com, highlights that many home sellers today have significant equity due to rising home prices over the past five years. This equity can be a powerful tool in your next home purchase, easing the financial transition.

How to Calculate Your Equity

To determine how much equity you have, you’ll need two key pieces of information:

  1. Your Current Mortgage Balance: You can find this on your latest mortgage statement.
  2. Your Home’s Current Market Value: You can get this through a professional appraisal, or better yet, contact me for a complimentary Professional Equity Assessment Report (PEAR). I can help you understand your home’s market value without any cost to you.

Moving Forward

Once you have a clear picture of your equity, you’re in a stronger position to consider your options. Whether you're looking to downsize, upgrade, or relocate, leveraging your home equity can make the process much more manageable.

Bottom Line

Understanding and utilizing your home equity can turn what seems like a challenging move into a smart financial decision. If you want to explore how much equity you have and discuss your next steps, let’s connect. Together, we can make your next move a reality.

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