Do You Know How Much Equity
You Have In Your Home? You May Be Surprised!
CoreLogic’s latest Equity Report revealed that 256,000 properties
regained equity in the third quarter of 2015. This is great news for the
country, as 92% of all mortgaged properties are now in a positive equity
situation.
Price Appreciation = Good News For Homeowners
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“Home price growth continued to lift borrower
equity positions and increase the number of borrowers with sufficient equity to
participate in the mortgage market. In the last three years, borrowers with at
least 20 percent equity have increased by 11 million, a substantial uptick that
is driving rapid growth in home equity originations.”
Anand Nallathambi, President and CEO of CoreLogic, believes this is
a great sign for the market in 2016 as well, as he had this to say:
“Homeowner equity is the largest source of
wealth for many Americans. The rise in home prices, expected to be at least 5% in 2016, will
continue to build wealth and confidence across America
This is great news for homeowners! But, do
they realize that their equity position has changed?
A study by Fannie Mae suggests that many homeowners are not
aware that they have regained equity in their home as their investment has
increased in value. For example, their study showed that 23% of Americans still
believe their home is in a negative equity position when, in actuality, CoreLogic’s report
shows that only 8% of homes are in that position (down from 9% in Q2).
The study also revealed that only 37% of Americans believe that
they have “significant equity” (greater than 20%), when in actuality, 74% do!
This means that 37% of Americans
with a mortgage fail to realize the opportune situation they are in. With a
sizeable equity position, many homeowners could easily move into a housing
situation that better meets their current needs (moving to a larger home or
downsizing).
Fannie Mae spoke out on this issue in their report:
“Homeowners who underestimate their homes’
values not only underestimate their home equity, they also likely underestimate
1) how large a down payment they could make with their home equity, 2) their
chances of qualifying for mortgages, and, therefore, 3) their opportunities for
selling their current homes and for buying different homes.”
Bottom Line
If you are one of the many Americans who are unsure how much
equity you have built in your home, don’t let that be the reason you fail to
move on to your dream home in 2016! Find out If how we can help you evaluate your situation and assist you along the way!
Keji
& Associates of Fairfax Realty is a team of licensed agents working daily
to get homes sold for our clients in all parts of the metro area. We
delight our clients by delivering world class service every step of the
way and we strive to create a win-win situation this is all part of our
values and beliefs. Contact us @ 301-613-2043 , visit
our website www.metrohomesrealty.com
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