What Every Homeowner Should Know About Their Equity

Thinking about selling your home? Understanding your home equity is the first step in determining what you can afford when you move. With home prices rising significantly over the past few years, many homeowners have more equity than they realize.

Understanding Home Equity

Home equity is the difference between your home's current market value and the outstanding balance on your mortgage. For instance, if your home is valued at $400,000 and you owe $200,000 on your mortgage, your equity is $200,000.

In recent years, homeowners have seen substantial returns on their property investments when selling. This increased equity can be a significant asset when planning your next move.

Steps to Take Next

If you're considering selling your home, it's crucial to determine your equity and understand its implications for your sale and future financial planning. Collaborate with your real estate agent to get an accurate assessment of your home's value. Additionally, consult with a tax professional or financial advisor to comprehend your specific financial situation and make informed decisions.

Bottom Line

Rising home prices mean increased equity for many homeowners. Reach out to a local real estate agent to discover how much equity you have in your home and proceed with confidence when you decide to sell.