One of the benefits of being a houszowner is that you build equity over time. By selling your housz, that equity can be used toward purchasing your next housz. But before you can put it to use, you should understand exactly what equity is and how it grows. Bankrate explains it like this: “Housz equity is the portion of your housz you’ve paid off – in other words, your stake in the property as opposed to the lender’s. In practical terms, housz equity is the appraised value of your housz minus any outstanding mortgage and loan balances.”
Majority of Americans Have a Large Amount of Equity If you’ve owned your housz for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below):
And having such large amounts of equity is a benefit to houszowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, explains: “Record levels of housz equity provide security for millions of families, and minimize the chance of another houszing market crash like the one we saw in 2008.” Over time, your housz equity grows. In addition to providing financial stability while you own your housz, when you’re ready to sell it, that money could go a long way toward paying for your next housz.
Bottom Line By selling your housz and leveraging your equity, it can be easier to pay for your next housz. Let’s connect today so you can find out how much housz equity you have and start planning your next move.