Four Ways to Leverage Home Equity
“Equity.” It’s a term you’ve heard before, especially if you’ve ever been in the market for a home, but is it one that you really know the meaning of, or how it affects you? Home equity is the difference between the amount you owe on your mortgage and the value of your home. This means, as you make payments on your mortgage to lower the amount you owe, you simultaneously build the amount you’ve earned in your home, or your equity. If the balance of your mortgage is valued at more than the value of your home, you have negative equity; however, if the balance of the mortgage is lower than the value of your home, it is positive equity and this positive equity can be converted into cash.
June 21, 2021