Equity is the value you own in a property such as a house. It’s the difference between what’s owed and what the property is worth in the current market.
Let’s say you have a house worth $300,000 today and you owe the bank, $200,000 your equity would be $100,000. If the house is valued at $500,000 in five years and you still owe a $150,000 your equity will be $350,000.
Read Also: When Can You Cancel Mortgage Insurance
Equity grows if the property values goes up or if the amount owed goes down. Equity in a home can be used as collateral for loans, but a house is not a piggy bank.
Home equity can become a key financial asset over time; treat it wisely. So, if you’re thinking about buying or selling a home and have any questions feel free to contact us.
Watch the video below:
Subscribe to our YouTube Channel for more Real Estate Free Reports
One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.