Learn how the equity you've built in your current home can open doors.
If you’re a homeowner, you’re likely familiar with the concept of equity in your home. Today, let’s dive into how the equity you’ve built in your current property can play a significant role in your next home purchase. The decision to sell your house and transition to a new one can be complex, especially if you’re concerned about taking on a higher mortgage rate for your new property.
Equity is essentially the difference between your home’s current market value and the remaining balance on your mortgage. Over the past few years, equity has seen rapid growth, thanks to surging home prices. Although the market has normalized somewhat, the demand for homes still exceeds supply, leading to a resurgence in prices.
“Your home equity can serve as a launching pad for your next real estate journey.”
Rob Barber, CEO of Attom, a property data provider, notes that equity levels remained high even during recent market fluctuations and are now rebounding stronger than ever. This means that the equity you’ve accumulated could become a formidable asset in your next real estate venture.
Data from Adam and the census highlights that a significant portion of homeowners—nearly two-thirds—have either paid off their mortgages entirely or have achieved at least 50% equity. For approximately 70% of homeowners, equity is a substantial resource that can empower their next move.
When you decide to sell your current home, your equity can have a transformative impact on your purchasing power. It can be used to fund part or even the entirety of your next home’s down payment. With a substantial equity cushion, you might opt for a larger down payment, which can significantly reduce the amount you need to finance.
If you’ve been in your current home for an extended period, you might have built up enough equity to contemplate an all-cash purchase. By leveraging your hard-earned equity, you could potentially sidestep borrowing altogether, offering you the freedom to bypass concerns about prevailing mortgage rates.
In essence, your home equity can serve as a launching pad for your next real estate journey. To fully grasp the magnitude of your equity potential and how it can propel your next purchase, I encourage you to call or email me. Let’s connect and discuss how you can maximize the value you’ve accumulated in your current property. Your next move might be closer—and more advantageous—than you think.
