Do you know the equity in your home?

The more home equity the more options you have

Having equity in your home can indeed provide you with more options and flexibility when it comes to buying a new home before selling your current one. Here are some potential benefits of having equity in your home:

1. Lower debt-to-income ratio: If you have paid down a significant portion of your mortgage, your debt-to-income ratio will be lower, which can make it easier to qualify for a new mortgage on a second home. This can be especially helpful if you plan on buying a new home before selling your current one.
2. Larger down payment: With equity in your home, you may be able to use some of that money to make a larger down payment on a new home. A larger down payment can help you secure a more favorable interest rate and reduce your overall monthly mortgage payments.
3. Bridge loan: If you need to buy a new home before selling your current one, you may be able to take out a bridge loan to cover the down payment and other expenses. With equity in your home, you may be able to qualify for a larger loan and potentially secure more favorable terms.
4. Flexibility: With equity in your home, you have more flexibility in terms of what you can do with the proceeds from the sale. You can use the money to pay off debts, invest in other assets, or put it towards a down payment on a new home.
5. Improved creditworthiness: Paying off your mortgage and building equity in your home can improve your creditworthiness and make it easier to obtain credit in the future.
6. Peace of mind: Having equity in your current home can provide you with peace of mind when buying a new home. Knowing that you have a valuable asset that can be used to pay down debt or cover expenses can reduce stress and provide greater financial security.

Adding a Second Mortgage Ads Risk

However, it’s important to remember that taking out a mortgage on a second home can still be a significant financial obligation. It’s important to carefully consider your financial situation and consult with a financial advisor or real estate professional before making any major decisions. Additionally, buying a new home before selling your current one can come with some risks, such as potentially carrying two mortgages at the same time or needing to sell your existing home quickly to cover expenses.

So do you know how much equity you have in your home?

Many people don’t, and that amount may surprise you.

About 68% of homeowners have at least 50% equity. That’s shown by the green and blue sections (in the video) in the chart here, and the green piece alone shows about 39% own their home free and clear.

When you sell your house, your equity can be put towards paying for your next home.

If you’re unsure how much equity you have, let’s talk, I can put together a professional equity assessment report for you so you can get ready to make your next move. Contact us today at (440) 628-1321.

Northeast Ohio Cities We Buy, Build & Sell Houses In…

If you are looking for a home in northeast Ohio, there are many options available to you. You can find suburban homes with large yards and easy access to highways, or homes in downtown Cleveland or Akron areas with close proximity to amazing restaurants and nightlife. No matter if you are looking to sell, build new construction, or buy resale, there is a reason to reach out to Realty Done to guide you through to your new destination with less stress and overwhelm.