*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
One of the most common terms used in the mortgage business, and one of the biggest selling points of purchasing a new home or refinancing your current home is a term called "equity". What does equity mean? Why is it so important?
Put simply, equity is the amount a property is currently worth minus how much the current resident owes on the property.
If you're a first time homebuyer, purchasing a home is one of the best ways to start building equity. The more you pay towards your home, and the more upgrades you make to your home, the more equity you build. Then, when it's time to purchase a new home once again, the equity your home has earned will be returned to you at the time you sell the home.
For example, if you were to purchase a $350,000 home with a down payment of 17% ($60,000) on a term of 30-years, you will begin your home-owning experience with $60,000 of equity in the home. Then, with each monthly payment you make, the amount of equity you have goes up. Once you fully pay off your home, you'll have 100% ($350,000) worth of equity in the home.
The quicker you begin building equity, the faster you'll be able to use more money towards other real estate ventures, or using the money towards other debts, goals, hobbies or collections you might have.
For more information on home equity and how you can benefit from it, please contact me today! I'd love to help you set goals to build equity and prepare for other future real estate goals you have.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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