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.
