What Every Homeowner Should Know About Their Equity

<article class="post-1146520 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1146520"><span class="entry-date">August 5, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">What Every Homeowner Should Know About Their Equity</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=What+Every+Homeowner+Should+Know+About+Their+Equity&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwhat-every-homeowner-should-know-about-their-equity%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="What Every Homeowner Should Know About Their Equity Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240805-What-Every-Homeowner-Should-Know-About-Their-Equity-original.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>Curious about <a href="https://www.simplifyingthemarket.com/2024/07/31/should-you-rent-out-or-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling your home</a>? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since <a href="https://www.simplifyingthemarket.com/2024/07/29/are-home-prices-going-to-come-down/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> rose so much over the past few years, most people have much <a href="https://www.simplifyingthemarket.com/2024/07/26/unlocking-the-benefits-of-your-homes-equity/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">more equity</a> than they may realize.</p>
<p>Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home.</p>
<h4><strong>Home Equity: What Is It and How Much Do You Have?</strong></h4>
<p>Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.</p>
<p>Recent data from the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank"><em>Census</em></a> and <a href="https://www.attomdata.com/news/most-recent/q2-2024-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank"><em>ATTOM</em></a> shows Americans have significant equity right now. In fact, more than two out of three homeowners have either completely paid off their mortgages (<em>shown in green in the chart below</em>) or have at least 50% equity in their homes (<em>shown in blue in the chart below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240801/20240805-Americans-Sitting-on-Tremendous-Equity-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240801/20240805-Americans-Sitting-on-Tremendous-Equity-original.png"/></a>Today, more <a href="https://www.simplifyingthemarket.com/2024/07/30/the-biggest-mistakes-sellers-are-making-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeowners</a> are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move.</p>
<h4><strong>What You Should Do Next</strong></h4>
<p>If you’re thinking about selling your house, it’s important to know how much <a href="https://www.simplifyingthemarket.com/2024/07/03/homeowners-gained-28k-in-equity-over-the-past-year/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">equity</a> you have, as well as what that means for your home sale and your potential earnings. The best way to get a clear picture is to work with your agent, while also talking to a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward.</p>
<h3>Bottom Line</h3>
<p>Home prices have gone up, which means your equity probably has too. Connect with a local <a href="https://www.simplifyingthemarket.com/2024/07/15/why-working-with-a-real-estate-professional-is-crucial-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate agent</a> so you can find out how much equity you have in your home and move forward confidently when you sell.</p>
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