Cracking the Code: How Your Home's Equity Can Rock Your Next Move

Cracking the Code: How Your Home's Equity Can Rock Your Next Move

By Adam Gillespie

Alright Denver, let's get into the nitty-gritty of what could be your secret weapon in the real estate game: home equity. If you're sitting there, beer in hand, wondering if now's the right time to sell your castle, let's talk. Yeah, the market's been tighter than a drum solo in a rock concert, but there's a silver lining called home equity that might just sway your decision.

Bankrate drops the knowledge bomb that home equity is basically the difference between your home's market value and the outstanding balance of your mortgage. It's the portion of your house you actually own. You start building equity with your down payment and keep piling it up with every mortgage payment you make. Plus, as your home's value goes up, so does your equity.

Here’s the kicker: thanks to the housing market going bananas recently, there’s a good chance your home’s value – and consequently, your equity – has skyrocketed. That means you're probably sitting on a bigger gold mine than you realize.

Leveraging Your Home Equity Like a Boss

Thinking about a new pad? Your home equity can be the MVP in this scenario. CoreLogic throws out there that the average homeowner with a mortgage is lounging on over $300,000 in equity. That’s a whole lot of dough.

And here’s a cherry on top: Census and ATTOM data show that around 70% of homeowners are either completely mortgage-free or have at least 50% equity. We’re talking a major equity party here.

Post-Sale: Make Your Equity Work for You

• Cash Buyer Swagger: If you’ve been in your spot for a good while, you might just have enough equity to buy your next place outright. No mortgage, no sweat about interest rates. Investopedia says going cash can make you king of the hill in competitive markets and save you a bundle on interest. Plus, you’ll be more appealing than free backstage passes to home sellers.

• Down Payment on Steroids: Use that equity to beef up your down payment on the next purchase. It could mean borrowing less and snagging better interest rates, as The Mortgage Reports points out. More money down equals less risk for lenders, which equals better deals for you.

Finding Out What You're Sitting On

Curious about the size of your equity stash? Get a real estate pro to whip up a Professional Equity Assessment Report (PEAR) for you. It's like finding out your band's hit single just went platinum.

Bottom Line

Ready to make your move? Your home equity isn’t just playing back-up; it's ready to take the lead. Hit me up, Adam Gillespie, your real estate maestro, and let’s see how we can turn your equity into your next dream home’s down payment or even score your next home outright. Let's rock this!

Adam Gillespie: Your Trusted Denver Real Estate Guide