Found 3 blog entries tagged as equity.

Real Estate Word of the Day: Equity

Equity is the difference between the market value of a property and the outstanding balance on a mortgage or any other debts secured by the property. In simpler terms, it's the portion of your property that you truly own outright. As you pay down your mortgage and your property's value appreciates, your equity in the property grows. Equity is not just a number on paper; it's a powerful financial asset that can have a significant impact on your financial well-being.

Equity is one of the primary ways people build wealth through real estate. As you pay down your mortgage, your equity increases, and if the property's value appreciates, your wealth grows even faster. Over time, this can lead to substantial financial…

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There are a number of myths floating around regarding the home buying process. Such misconceptions have kept many would-be homeowners from realizing the personal and financial rewards of owning a property.

To clear things up, here are a few myths about buying your first home that simply aren't true.

Myth #1 - "It's Cheaper To Rent Instead Of Own"

If you buy a property that is within your budget and your mortgage terms allow you to make comfortable monthly payments, the cost of rent can often be higher than mortgage payments. Sure, there are other expenses associated with owning a property that you wouldn't be responsible for if you were renting, but one thing that many people forget is the fact that renting does not allow you to build equity. The…

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Home equity is the difference between what your home can sell for and what you owe on it. You can calculate your equity by subtracting the amount still owed on the mortgage loan(s) from the market value of your property.

Generally, the longer you own your home, the more equity you build. If you can’t make the payments, you can lose your home. This is why you have to use your home equity in smart ways.

  1. Remodel your home. If you’ve wanted to add on a family room or modernize your kitchen, consider using your home’s equity to fund the project. Home improvements usually increase your home’s marketability and value.
  2. Make major repairs where need be. Your home’s equity can be a funding source for major repairs likeplumbing problems and re-roofs.…

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