What Every Homeowner Should Know About Their Equity
Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since home prices rose so much over the past few years, most people have much more equity than they may realize.
Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home.
Home Equity: What Is It and How Much Do You Have?
Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.
Recent data from the Census and ATTOM shows Americans have significant equity right now. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):
Today, more homeowners are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move.
What You Should Do Next
If you’re thinking about selling your house, it’s important to know how much equity you have, as well as what that means for your home sale and your potential earnings. The best way to get a clear picture is to work with your agent, while also talking to a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward.
Bottom Line
If you're considering selling your home in Telluride, don't miss out on the opportunity to capitalize on your hard-earned equity. Connect with Anne-Britt Ostlund at Mountain Rose Realty for a personalized consultation and take the first step toward achieving your real estate goals. With expert guidance and a deep understanding of the Telluride market, you can maximize your returns and make your next move with confidence.
Frequently Asked Questions
- What is home equity and how do I calculate it?
- Home equity is the difference between your home's current market value and the amount you still owe on your mortgage. For example, if your home is worth $400,000 and you owe $200,000 on your mortgage, you have $200,000 in equity.
- How much equity do most American homeowners have right now?
- According to recent Census and ATTOM data, more than two out of three homeowners either have completely paid off their mortgages or have at least 50% equity in their homes, reflecting significant gains from recent home price appreciation.
- What should I do first if I'm thinking about selling my home to use my equity?
- Start by working with a real estate agent to understand how much equity you have and what it means for your sale. It's also wise to consult with a tax professional or financial advisor who can help you understand your specific situation and guide your next steps.
- Who should I contact if I'm considering selling in Telluride?
- Anne-Britt Ostlund at Mountain Rose Realty offers personalized consultations and has deep expertise in the Telluride market to help you maximize your returns and plan your next move with confidence.