Building Equity: Should I Move or Refinance?
The level of equity homeowners possess is at an all-time high. According to the U.S Census, over 38% of owner occupied homes are owned free and clear, meaning they don't have a mortgage; those with mortgages can also see their equity skyrocket when real estate values increase as every dollar gain on property equates to one dollar in value for your house!
Many people are now using their home equity to do one of two things.
1. Refinance. An abundance of equity and record-low mortgage rates can make refinancing a home very easy. Some homeowners choose to refinance so they can lower their payments. Others convert a portion of the equity to cash while keeping their monthly payment the same. There are many homeowners who could take advantage of lower rates and higher levels of equity, but they haven’t yet.
2. Move into your dream home. The past year prompted many households to redefine what a dream home really means, and it’s something different to everyone. Those who have a high mortgage rate could use their equity as a down payment and perhaps buy their next home without significantly raising their mortgage payment.
Whether you’re refinancing your house or moving to a new home, your current mortgage rate and your level of equity are crucial in your decision-making process. Look at your mortgage statement to find out your interest rate, and then let’s connect to determine the potential equity in your home. You may be surprised by the opportunities you have.