What Is Positive Equity?
If you are considering selling your current house and moving to a larger one, you may be surprised at the current positive equity you have in your home. Positive equity is the difference between your home’s appraised value and your current mortgage balance. When you purchase a home and make a down payment, you are creating immediate equity. Each mortgage payment following the initial down payment then increases your equity on the home. Additionally, when your home increases in value, your equity grows.
The State of the Market
Keeping Current Matters reported from CoreLogic’s Equity Report that 91.5% of homes in the U.S. have positive equity on their homes. Out of that 91.5%, 72.6% have significant equity, which is defined as equity greater than 20%.
How Appraisals Help
The best way to learn if you have positive equity on your home is to have your home appraised. Your home may be worth more than you think. If you have been considering moving into a larger home or living in a different place, the real estate market is hot! I would love to meet with you and help you understand the equity you have on your home, as well as refer you to one of my trusted professional appraisal partners. Call me today to set up an appointment.
*A special thanks to Kelly Waugh of Fairway Independent Mortgage for helping us with the content of this blog post.