Moving? Equity and Low Mortgage Rates Are on Your Side This Year
Home prices have been increasing for 95 consecutive months, according to the National Association of Realtors . If you’re a homeowner, whether you’re looking to move up or downsize your living space, an increase in value is great news, as you’ve likely built
significant equity in your home. How to Use Your Home Equity
For move-up buyers, the typical pattern for building financial stability and wealth through homeownership works this way: you buy a house and gain equity over several years of mortgage payments and price appreciation. You then take that equity from the sale of your house to make a down payment on your next home, and then repeat the process. For homeowners ready to downsize, home equity can work in a slightly different way. What you choose to do depends in part on your goals. According to HousingWire.com , for some, the desire to downsize may be related to retirement plans or children aging out of the home. Others may choose to live in a smaller home to save money or simplify their lifestyle in a space that’s easier to clean and declutter. The reasons can vary greatly, and even by generation. Those who choose to put their equity toward a new home may be able to make a substantial down payment or even buy their next home in cash. This is incredibly valuable if your goal is to have a minimal mortgage payment or none at all.
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