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Take Advantage of Your Home Equity: A Homeownerʼs Guide
Take Advantage of Your Home Equity:
Homeownership offers many advantages over renting, including a stable living environment, predictable monthly payments, and the freedom to A Homeownerʼs make modifications. But oneGuide of the biggest benefits it offers is the opportunity to build wealth over time. Researchers at the Urban Institute found that homeownership is financially beneficial for most Homeownership offershave many advantages shown that theover median families,1 and studies renting, including a stable living environment, net worth of homeowners can be up to 80 times predictable payments, and areas. the freedom to 2 greater thanmonthly that of renters in some make modifications. But one of the biggest benefits itSo offers the opportunity build wealth over time. howisdoes purchasing atohome help you build Researchers at the Urban Institute found that wealth? And what steps should you take to maxihomeownership financially beneficialFind for most mize the1 potentialisof your investment? out and studies have shown that the median families, how to harness the power of home equity for a net worth of homeowners can be up to 80 times secure financial future. greater than that of renters in some areas.2 So how does purchasing a home help you build wealth? And what steps should you take to maximize the potential of your investment? Find out how to harness the power of home equity for a secure financial future.
WHAT IS HOME EQUITY? Home equity is the difference between what your home is worth and the amount you owe on your mortgage. So, for example, if your home would currently sell for $250,000 and the remaining balance on your mortgage is $200,000, then you have $50,000EQUITY? in home equity. WHAT IS HOME
The equity in your home is considered a non-liquid asset. It’s your money; but rather than sitting in a bank account, it’s providing you with a place to live. And when you factor in the potential of appreciation, an investment in real estate will likely offer a better return than any savings account available today.
Home equity is the difference between what your home is The equity in your home is considered a non-liquid Continued on page worth and the amount you owe on your mortgage. So, for asset. It’s your money; but rather than sitting in2... a example, if your home would currently sell for $250,000 bank account, it’s providing you with a place to live.