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Top Benefit Of Owning a Home vs. Renting
October 01, 2019 at 12:51pm | Rima Rafeh
Let’s take a crash course on real estate lingo.
Equity: The difference between the value of your home and what you actually owe.
Why are we telling you things? Well for one we believe you have the right to know what you are doing with your finances. Secondly, because it can mean that your mortgage can also be a forced savings plan.
What does that mean and how can you benefit?
Home appreciation is when your house or property has increased in value which makes it worth more; increasing your home equity value. CoreLogic recently revealed that the mean of all homeowners in America gained about 65,000 in equity over the past half-decade. This is astonishing because the last decade many homeowners were tapping into that surplus of cash. Between the 2006-2008 homeowners used their homes like some sort of ATM withdrawing money from their equity pool to purchase luxury items that can, in turn, build up bad debt.
50% of 50%
About half of all homeowners in theUnited States have at least 50% of equity in their homes. Urban Institute outlines that 37.1% of homes in the country are free of mortgages. ATTOM Data Solutions in an equity study revealed that 62.9% of homes that are under a mortgage 25.6% of them have at least 50% equity valued into their homes. And it’s only increasing.
The Bottom Line
Homeownership is vastly different than renting, housing expenses such as payments go right back to you in equity. If you can any questions regarding your equity status please feel free to contact me and we can chat.