Building Your Equity Faster
Equity is the difference between the value of your property and what you owe on your mortgage, if you have one. It’s the share of the property that you actually own, not what the bank owns, until your mortgage payments are completed and you own your property in full. Equity usually means more profit when it’s time to sell. If needed, it can even provide cash through a home equity loan or cash-out refinance. Unless you have a negative amortization loan or a reverse mortgage, equity automatically increases monthly when you make your mortgage payment. However, there are way you can grow your equity more rapidly. 1. It starts when you purchase your home in an “up and coming” market. If home values in your neighborhood are going up, your property value is rising as well, if you maintain you home. 2. When buying a home, increase your down payment or, ...