Are you curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since home prices have risen so much over the past few years, most people have much more equity than they may realize. Here’s a deeper look at what every homeowner should about their equity if they are ready to cash in on their investment and put their equity toward their next home.
Home Equity: What Is It and How Much Do You Have?
Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.
Recent data from the Census and ATTOM shows Americans have significantly more equity right now than they might realize. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):
Today, more homeowners are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move. With enough equity, you might be able to buy your next home with a very small mortgage or even no mortgage at all.
What You Should Do Next
If you’re thinking about selling your house, it’s important to know how much equity you have, as well as what that means for your home sale and your potential earnings. The best way to get a clear picture is to work with your agent, while also talking to a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward.
Bottom Line
At Bay Shores Real Estate, we are a partnership of professionals, each dedicated to helping people find the life they love. One with more free time, less financial stress, more beauty, and less worry. Our firm brings all of the key real estate-related services discerning clients need, together under one roof.
Home prices have gone up, which means your equity probably has too, and mortgage rates have begun to fall. Let’s connect so you can find out how much you have in your home and move forward confidently when you sell.
