It’s true that as you pay down your mortgage, you build equity (the amount of your home you actually own). But as your home appreciates in value each year, it also helps you build equity without having to lift a finger. This equity becomes a valuable asset you can leverage to help you meet other financial needs.
Since 1991, home values have increased an average of 3.3% each year, according to the Federal Housing Finance Agency’s (FHFA) House Price Index (HPI). Just in the past year, home prices went up an average of 6.0% across the country. The chart below shows how home prices have generally risen over the past 26 years. As you can see, current home values have bounced back well over the peak of the housing bubble. That means, based on appreciation alone, there’s a good chance that you may have equity to tap into.
Saving up enough money to meet your financial goals can take years. By refinancing your home, you can cash out your equity and use it for whatever you need, while taking advantage of today’s historically low interest rates. Whether you want to pay off debt, buy a car, or renovate your home, leverage the equity in your home to help you meet your financial goals.
Posted from Vibrant Living Newsletter – https://www.vibrantlivingnewsletter.com
This article is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.
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