Tagged : equity

Found 4 blog entries tagged as "equity".

Each year, home renters face the question of whether to renew their lease for another year or determine if it is time to buy a home of their own. Over the past couple of years, the US housing market has changed dramatically as home values have soared and interest rates have remained low. So, if you are still renting your home, it might be time to buy instead.

4 Facts About Renting your Home

1. Rents Are Rising Quickly – Higher priced home values drive higher rent costs. While a 30-year fixed home loan will provide steady monthly payments for the duration, most renters are shocked to see their housing payments rise each year.

2. Paying for Your Landlord’s Equity – As home prices rise, so does the equity in the property. As a renter, you are

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For decades, homeowners with equity have used home equity lines of credit (HELOC) to finance their home improvement projects. These HELOC loans act like a checking account, drawing money against the equity in the home to use for a variety of larger purchases, including home remodel projects. Once tax deductible, these loans were also used to pay off high-interest credit cards, making these loans very popular with homeowners.

Unfortunately, the market crash of 2008 changed all this. During the drop in home prices and resulting lender collapse, many borrowers defaulted on their loans and HELOC loans were particularly vulnerable as they usually sat in the second position, after the primary home loan. Many HELOC lenders received very little, or

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One of the first things most potential home sellers do is view their home with a critical eye to determine what, if any, changes or renovations they should make before listing. Buyers love a turn-key home and often a few simple changes can mean thousands of dollars in profit for the seller.

Currently, these sellers are finding it very difficult to find contractors and tradesmen to help make these changes. Most of the country is experiencing a labor shortage and this has made finding help for home projects extremely difficult.

Pre-listing renovation companies have emerged to fill this void in skilled labor. Working with real estate agents to identify the right kind of renovations, these companies will perform the work before the home is listed

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Build Wealth with a Less Expensive Home

Here’s a case for buying a less expensive home than you secretly want.

According to the U.S. Bureau of Labor Statistics, the average American spends approximately 37% of his or her income on housing. Notably, the top 20 percentile earners spend only 29.9% of their income, while the bottom 20% pay 39.9%. So what do high earners know that you don’t know?

If you have a little less money invested in housing, you’ll have more money to do other things, like: 

  • Invest more in your 401K or Roth IRAs.
  • Pay extra on your mortgage so one day you’ll be mortgage-free.
  • Save money to buy another property. Rent out the first home for passive
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