Homeowners, what is the *1 Thing* that has rapidly increased for you this year?
Is it your home equity? Home equity is a powerful asset and it is a big component
of homeownership. However, most homeowners are unaware of how much
equity they have or how they can use home equity to build their net worth.
Hi, I’m Terry Tucker with eXp Realty and I love helping people buy and sell homes right here in the East Bay!
Before we look at the benefits of home equity, let’s break down what Home Equity actually is… Home equity is the portion of your home that you own outright. It is subtracting your mortgage balance from the home’s current market value.
Let’s say your home is worth $1,500,000. If you were to go to market and sell your home for fair market value or $1,500,000 and your mortgage was $1,000,000 then you would have $500,000 in equity or cash once you paid off your mortgage loan.
According to Corelogic Homeowner Equity Insights, U.S. homeowners with mortgages have seen their equity increase at about 9.6% since 2023. This is partially due to the home prices climbing in recent years.
As a homeowner, why is building home equity so important? First, it means you have a source of income. Most homeowners are able to borrow against their equity for nearly any reason such as home improvements or college tuition. This is generally done with a home equity line of credit or “HELOC”. You can also build long-term wealth over a period of time because property values usually appreciate in value and do not decrease.
But even more importantly, you are more likely to make a profit when you sell your home and then use the profits from the sale to purchase another home, pay off debt or invest elsewhere. A home is one the few types of collateral that has the potential to increase over time. As always it is important to weigh the pros and cons of accessing your home equity and speak with a well qualified lender and real estate agent.
If you would like to know more about your home value, Call me today and let’s talk about it! I’d love to prepare a comparative home value report for you. This way you can see the latest pricing trends in your area and determine your home equity value.
I’m a seasoned East Bay expert with a 5-Star rating. I’ll help you navigate the market and make it happen, whether that’s selling or buying or both!
And if you or someone you know needs to sell a home, ask me about my home-selling plans.. I took the pain out of negotiating with a Realtor and made it SUPER simple. Really! Choose Silver, Gold, or Platinum- Pick your Plan and Pick your Price. Terms do apply. I’m Tanja and I sell homes. Let’s get you going, Call me today!
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
Why not check out one of my no-obligation, online, On-Demand, virtual Real Estate Seminars?
Click here—> I WANT TO GAIN ACCESS TO THE *HOME BUYER* SEMINAR NOW
Click here—> I WANT TO GAIN ACCESS TO THE *HOME SELLER* SEMINAR NOW