Austin Ranked in the Top Ten Cities with Highest Percentage of Homes in Positive Equity Territory
Do you know your home’s equity level? Recently in a study done by The Home Story, Austin ranked in the top ten cities with highest percentage of homes in positive equity territory.
What makes a home equity level drop? The factors that can lead to negative equity include a decline in a home’s value, an increase in mortgage debt, or both factors combined. Having no equity or worse, negative equity in your home is a terrifying place to be.
Positive equity is important to your net worth, and it’s essentially the cash you have in your pocket. Having positive equity allows you to more easily make changes in your financial situation. Your home equity can increase over time if the property value increases. The down payment on the home’s market value creates equity for yourself.
If you have built up equity in your home but still have a mortgage balance to pay off, you may consider using a home equity line of credit (HELOC) to reduce your monthly payments and the overall interest you pay on your loan. Using a HELOC to pay off your mortgage is essentially a form of refinancing. It allows you to reduce your interest rate without the closing costs associated with a home refinance.
If you need more information on loans and financing give us a call! Our team can educate on all the things you need to know before buying or selling a home. We are more than happy to help! Let us know if you or anyone you know wants more information!