{"id":5865,"date":"2024-06-06T05:30:00","date_gmt":"2024-06-06T10:30:00","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/your-equity-could-make-a-move-possible\/"},"modified":"2024-06-06T05:30:00","modified_gmt":"2024-06-06T10:30:00","slug":"your-equity-could-make-a-move-possible","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/your-equity-could-make-a-move-possible\/","title":{"rendered":"Your Equity Could Make a Move Possible"},"content":{"rendered":"

\"Your<\/p>\n

Many homeowners looking to sell<\/a> feel like they\u2019re stuck between a rock and a hard place right now. Today\u2019s mortgage rates<\/a> are higher than the one they currently have on their home, and that\u2019s making it harder to want to sell<\/a> and make a move. Maybe you\u2019re in the same boat.<\/p>\n

But what if there was a way to offset these higher borrowing costs<\/a>? There is. And the money you need probably already exists in your current home in the form of equity. <\/p>\n

What Is Equity?<\/strong><\/h4>\n

Think of equity as a simple math equation. Freddie Mac<\/em> explains<\/a>:<\/p>\n

\u201c. . . your home\u2019s equity is the difference between how much your home is worth and how much you owe on your mortgage.\u201d<\/em><\/p><\/blockquote>\n

Your equity grows as you pay down your loan over time and as home prices climb. And thanks to the rapid home price appreciation<\/a> we saw in recent years, you probably have a whole lot more of it than you realize.<\/p>\n

The latest from the Census<\/em><\/a> and ATTOM<\/em><\/a> shows more than two out of three homeowners have either completely paid off their mortgages (shown in<\/em> green in the chart below<\/em>) or have at least 50% equity (shown in<\/em> blue in the chart below<\/em>):<\/strong><\/p>\n

<\/p>\n

That means the majority of homeowners have a game-changing amount of equity right now.<\/strong><\/p>\n

How Your Equity Can Help Fuel Your Move<\/strong><\/h4>\n

After you sell<\/a> your house, that equity<\/a> can help you move without worrying as much about today\u2019s mortgage rates. As Danielle Hale, Chief Economist for Realtor.com<\/em> says:<\/p>\n

\u201cA consideration today’s homeowners should review is what their home equity picture looks like. <\/em>With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion.<\/em><\/strong> This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase.\u201d<\/em><\/p><\/blockquote>\n

To give you some examples, here are a few ways you can use equity<\/a> to buy your next home:<\/p>\n