Home prices are rising and rising some more in 2021.
The price at the beginning of the year climbed by more than 10% from the same time a year ago. Even the modest uptick to interest rates couldn’t slowdown that rate of home price growth through the opening months of 2021.
In some areas like Phoenix, Seattle and San Diego, home prices are up nearly 16% annually while other major cities continue to experience price spikes. At the same time, millions of homeowners across the nation are earning more equity as a result.
Since about June 2020, home prices quickly gained steam and have not looked back. From a historical perspective, the price gains are the highest they’ve been since 2006, creating opportunities for homeowners to build greater financial security through their equity.
Home equity is simply the portion of the home that’s paid off in context to the home’s current market value. To calculate the home’s equity, simply subtract the amount owed on the loan from the current home’s value.
Home equity is a key tool in building wealth and gaining financial flexibility for years to come. And this essential asset will only continue to grow as the market expands.
If you’re looking for a low-cost way to borrow a substantial amount of money, home equity paves an easy path forward. You can tap into the home equity you’ve built over the years to obtain funds for any reason, including major home improvements or renovations.
Others may apply for a cash-out refinance to tackle debt through consolidation, or advance themselves and increase their earning potential by paying for college or training. The money can also be used for emergency expenses, investment or other opportunities.
Depending on the type of loan, funds will be dispersed in a lump sum or on an as-needed basis, much like a credit card works.
Please contact us today to learn more about how you can tap into your home’s equity to gain access to life-changing financial resources that can pay for your next big move.