Do You Know How Much Equity Is In Your Home?
One of the benefits of homeownership is building equity over time. "Home equity is the portion of your home you've paid off – in other words, your stake in the property as opposed to the lender's. In practical terms, home equity is the appraised value of your home minus any outstanding mortgage and loan balances."
BY THE NUMBERS
If you've owned your home for a while, you've likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below). 61.8% of American's have 50% equity or more their home!
And having such large amounts of equity benefits homeowners in more ways than one. The equity in your home can be used to pay off debt, make home improvements, or even fund your child's college tuition. In addition, by selling your house and leveraging your equity, it can be easier to pay for your next home.
Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, explains:
"Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008."