Leverage Your Equity When You Sell Your House

<article class="post-651771 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-651771"><span class="entry-date">March 13, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Leverage Your Equity When You Sell Your House</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=Leverage+Your+Equity+When+You+Sell+Your+House&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fleverage-your-equity-when-you-sell-your-house%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="Leverage Your Equity When You Sell Your House Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/content/images/20230310/leverage-your-equity-when-you-sell-your-house-KCM.jpg?v=2" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>One of the benefits of being a homeowner is that you build equity over time. By <a href="https://www.simplifyingthemarket.com/2023/02/06/the-top-reasons-for-selling-your-house/" rel="noopener noreferrer" target="_blank">selling</a> your house, that equity can be used toward purchasing your next home. But before you can put it to use, you should understand exactly what equity is and how it grows. <em>Bankrate</em> <a href="https://www.bankrate.com/home-equity/what-is-home-equity/" rel="noopener noreferrer" target="_blank">explains</a> it like this:</p>
<blockquote><p><em>“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, </em><strong><em>home equity is the appraised value of your home minus any outstanding mortgage and loan balances</em></strong><em>.”</em></p></blockquote>
<h4><strong>Majority of Americans Have a Large Amount of Equity</strong></h4>
<p>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 <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank"><em>U.S. Census Bureau</em></a> and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2022-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank"><em>ATTOM</em></a>, the majority of Americans have a substantial amount of equity right now (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230310/americans-sitting-on-tremendous-equity-MEM.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230310/americans-sitting-on-tremendous-equity-MEM.png"/></a></p>
<p>And having such large amounts of equity is a benefit to homeowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at <em>ATTOM</em>, <a href="https://www.housingwire.com/articles/almost-45-of-homeowners-are-now-equity-rich/" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“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.”</em></p></blockquote>
<p>Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell it, that money could go a long way toward <a href="https://www.simplifyingthemarket.com/2023/02/13/what-you-should-know-about-closing-costs/" rel="noopener noreferrer" target="_blank">paying</a> for your next home. </p>
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