Your House Has Been Working Overtime. Do You Know How Much Equity You Have?
Most of us have a general idea of what’s in our checking account, 401(k), or that jar of change we’re eventually going to cash in.
But what about the value sitting inside your house?
According to the latest ICE Mortgage Monitor, American homeowners with mortgages are now sitting on a record $18 TRILLION in home equity. Even more interesting: 47.5 million mortgage holders have an average of about $212,000 in “tappable” equity.
And here in Chicagoland? Home prices were up 6.9% over the past year, leading every major metro tracked by the latest Case-Shiller Home Price Index.
So, What Exactly Is Home Equity, Phil?
Thankfully, this is one of the easier mortgage concepts:
Your Home’s Value – What You Still Owe = Your Equity
For example:
Home Value: $500,000 Mortgage Balance: $300,000 Approximate Equity: $200,000
It simply represents the portion of your home that you currently own.
Okay…So What Can I Actually Do With It?
Depending on your situation, home equity can potentially be used to:
Renovate or improve your home
Consolidate higher-interest debt
Help fund your next home purchase
Access cash without selling your home
Or—and this one is highly underrated—leave it alone and continue building wealth
There are several ways homeowners can access equity, including a HELOC, home equity loan, or cash-out refinance. The right option depends heavily on your current mortgage rate, how much money you need, and what you plan to use it for.
If you have a beautiful 3% mortgage rate, replacing the entire thing with today's rate just to remodel the kitchen may not make much sense.
So, How Much Equity Do I Have?
If you’ve owned your home for a few years—especially here in the Chicago suburbs—you may have accumulated considerably more equity than you realize.
Shoot me an email with your address and I’ll put together a quick Home Equity Checkup for you.
We can estimate:
Current Home Value
Remaining Mortgage Balance
Approximate Equity
Options available if you ever want to access your equity
No sales pitch. No need to refinance. Sometimes it’s just nice to know what your largest asset is worth.
Phil & Rose took a quick vacation to California and visited Newport Beach & Balboa Island. Meanwhile, Levi started PK4 at his new preschool. Finally, the entire Buki Gang took a quick trip to Wisconsin for a family vacation.
WHISKEY OF THE MONTH
free whiskey raffle
Giveaway Time!
Congrats to the most recent winner, Trace E.
This month, we are offering a free raffle for a bottle of Barrell Bourbon Batch 25. This bottle won double gold at the San Francisco World Spirts Competition!
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The Bukowski Team
Philip Bukowski | Branch Sales Manager @ The Money Store | NMLS ID# 1403277 | Co. NMLS ID # 1019 405 Illinois Ave | Suite #2C | St. Charles, IL 60174 M: 630-254-3752 | E: phil@themoneystore.com
Any statements or opinions presented here are those of the author and do not necessarily reflect those of MLD Mortgage, Inc. dba The Money Store. Any predictions or forecasts presented here are not guaranteed outcomes and should not be relied on as such. Any mortgage programs, interest rates, payments, or mortgage scenarios presented here are provided for informational purposes only and are not quotes, offers of financing, or commitments to lend.
