A Beginner’s Guide to Home Equity
Simply put, home equity is the interest a homeowner holds in their property based on the current market value minus what they owe on the home. A basic formula for home equity might look something like this: Home Value – Owed Amount = Home Equity Home equity should always be considered as an asset that can be used in the future, but also never taken for granted. Home equity doesn’t rise overnight either and should be treated as a long-term asset that slowly appreciates. However, home equity can also decrease. There are a couple of ways you can increase and decrease your home equity. Ways to Increase Your Home Equity A larger down payment: The general standard for down payments on a home is 20% of the value, but what if you put down more? Even a one or two… Read More