Home Equity

Home Equity - The Greatest Gift

Before the current housing boom home equity was barely even an issue. Sure you could build it up to a level when you could borrow against it and it would make selling your home a worthwhile transaction, but it required years of hard work, patience, and continual payments toward your mortgage. A home was a home, not an investment - but my how quickly things have changed!

A mission for greater home equity growth

Home appreciation values across the country are about 14% - and in certain geographical areas that rate of price increase is more than double. The opportunity for instant home equity upon purchase is now the reality for millions of American home buyers, and it should play a role in your purchase decision - not a major role, but a role nonetheless. Because we're not talking about a few hundred dollars, or even a few thousand: in California the average home price is now somewhere around $500,000 and the average home appreciation rate is about 28%. Every year California homeowners amass on average $140,000 in home equity - $140,000!!! Not only is the mission of increasing home equity now easily attainable, but the sheer amount of potential home equity is absolutely staggering!

How to use your equity

The greatest problem facing today's homeowner isn't getting their hands on home equity but figuring out how to use it correctly, with the lowest applicable home equity loan rate and to their greatest overall financial effect. Well, you have a few options:

• You can thank the real estate gods for your good fortune of buying at the right time, you can accumulate your home equity and wait until you sell your home and actually make a huge profit.
• Or you can put your equity to work now by taking out an equity loan or a home equity line of credit. With these loans you can make purchases, consolidate debts, complete outside investments, or make that home improvement happen.

Whatever you do with your home equity, make sure it makes financial sense - if it saves or makes you money on the return, then its a good use of equity no matter how much you pay in your home equity loan rates.

About Us | Contact Us | Site Map | What's New | View as RSS