Selling Your Home - Magazine - Page 13
Your Equity Could Change
Everything About Your Move
If you own a home already, you may be tempted to wait because you don’t want to sell and
take on a higher mortgage rate on your next house. But your move may be a lot more
feasible than you think, and that’s because of how much your house has likely grown in
value. That one number might just change everything about your next move.
The Hidden Wealth of Homeownership
Here’s how it works. When you own a home, you build up something called equity.
Each time you make a mortgage payment, you’re chipping away at your loan balance. And that
helps your ownership stake in your home grow. At the same time, home values typically rise –
which drives up the overall value of your home.
When you put those two things together, you’re building wealth automatically, month after month,
year after year.
And that combo can make a real difference in your move. That’s especially true if you’ve lived in
your house for a while, which many homeowners have. According to Realtor.com:
