Trisha Witte Homes

Home Equity.

What is it and how to access it.

Home equity is the holy grail of home ownership.

A home is one of the greatest wealth building assets available to the average American. With the availability of mortgages and todays insanely low interest rates, home ownership is within your reach. When you are ready to sell, the profits from the sale of your primary residence are TAX FREE.

What is Equity

Think of equity as the ownership of an asset. For your home, equity is the difference between what your house is worth on the “fair market” minus any debts you have against your house (think mortgages and lines of credit)".

Home equity creates wealth.

According to the US Census Bureau, 34.5% of the average American’s wealth is in their home equity.

Everyone needs a place to live. You can rent and put your money towards your landlords net worth, or you can buy a house and gain wealth with every payment.

If you sell your house, you can use this equity to upsize, downsize, move to a better neighborhood, or buy a rental property. The options are endless.

Did you buy after 2008?

If you bought a house after the 2008 housing crash, you may be sitting on a huge nest egg. According to neighborhoodscout.com, the appreciation rate between 2010 and 2020 was 54%!

As a quick calculation, take what you paid for your house and multiply by 1.54, then subtract what you owe on your mortgage. That will give you a good reference point to how much equity you may have in your house.

How do I get equity?

There are 3 ways to build equity in your house

Buy a house for less than fair market value
Force appreciation by purchasing a fixer upper
Buy a house in an up and coming neighborhood
Pay down the mortgage

Let’s Review

Equity = Ownership
Home equity is the #1 builder of wealth for the average American.
Buying after 2008 could mean huge amounts of equity growth.
There are ways to access your equity - I’m happy to guide you through your options.

Want more information?

I have been studying personal finance and real estate for the last 5 years and would love to talk with you!

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Contact Me

Email: trishawittehomes@gmail.com

Call or Text: 616-759-9989

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