Posted by Apex Home Loans ● December 17, 2020

Two Key Impacts of Home Equity

Benefits of Home Equity

Equity is on the rise and is helping American homeowners secure a stable financial future. A recent report from CoreLogic shows that the average homeowner gained $9,800 in equity over the past year (graphic below). Experts are also expecting 2020 home prices to continue to rise, which means equity gains will also increase! You might be asking yourself, “Why is this so important to me?” Read on to learn more!

Having a good understanding of equity can help homeowners feel more secure about their finances, especially during the economic stress caused by the pandemic. That’s why we’re sharing two key benefits of increasing your home equity.

  1. Equity Increases a Homeowner’s Options to Buy a New Home
    This year has taken a tremendous emotional toll on many people between the shelter-in-place mandates, quarantine requirements, and online schooling. Since we are spending more time in our homes these have made many of us re-evaluate what we must-have in our homes. Having equity in your current home gives you a better opportunity to buy (or build) a home that includes all of your must haves.
  1. Equity Enables Homeowners to Help Future Generations
    You will be happy to know that an increase in home equity not only grows your overall wealth, but can also transfer to future generations! The Federal Reserve explains how your home equity can benefit future generations:

    “In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”

 

Bottom Line

While there are many benefits to being a homeowner, financial stability may be at the top of the list. Not to mention the fact that as your home appreciates in value, the financial options increase with it. Connect with the Apex Home Loans team today to discover the best loan options for you and your family.

Contact Us  Get Pre-Approved Apply Now

 

Topics: Home Equity, Homeownership, benefits of homeownership

Comments