Home equity hits a record high again. So what is exactly home equity?
Home equity is what your home is worth today, how much your home appraises today, minus how much mortgage balance you have on your home. So let’s say the appraiser comes to your home and says your home is worth 2 million, and then you only have a $1 million mortgage balance left on your home. The difference is 1 million. That is your equity. That’s how much you actually really own the home. So that’s your equity, 1 million. So this is a very good news in today’s market because a lot of sellers are able to sell very high and they’re able to buy their dream home because they have a lot of equity on their home, right? And then it’s also good news for those home buyers who are having difficult time paying their mortgages.
Numbers have shown that actually 98% of homeowners who have trouble paying their mortgages, they actually have 10% equity in their home. And this is because of the increase in the home values we’re seeing. Nationally, it’s about 20%.And just in the second quarter this year is about 7%. This is a nationally. So these group of people, if they’re not able to afford their mortgage payment, they can simply call their lender to do a loan modification or they can just simply sell it traditionally because they have equity and the home value has gone up so much that they’re able to sell it traditionally, not going through the foreclosure process.
So if you are looking to sell, this is a perfect time for you to sell.
So give me a call. I can help you to sell your home for top dollar.
You can call me at 858-345-0685.
Thanks so much for watching and I look forward to hearing from you soon.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379