How homeowners can use their equity to offset affordability issues.

How can your home's equity offset today's affordability challenges? Are you contemplating selling your house but feeling uncertain due to high rates in the current market? Rest assured that, even in a high-rate environment, your home's equity is a valuable asset.

So, just how much equity do homeowners currently hold? It may be accumulating more rapidly than you realize. According to a recent CoreLogic report, the average U.S. homeowner has approximately $290,000 in home equity. Take a look at the graph at 0:43 in the video to see how Americans are sitting on record-setting equity. A remarkable 60.7% have either paid off their mortgage or have at least 50% equity in their homes.

“There are two main ways you can use your equity; each has its pros and cons.”

Your home's equity can empower your next move in two significant ways, even amidst today's affordability challenges. First, it can turn you into a cash buyer. If you've owned your home for an extended period and have built substantial equity, you might be considering downsizing and operating without a mortgage, completely unburdened by the high-rate environment. The second option involves using your substantial down payment to reduce the principal amount on your next home purchase, potentially resulting in a lower interest rate.

These are two excellent strategies to explore when contemplating a move, as they can help address the affordability challenges prevalent in today's market. If you're seriously considering a move, whether it's upsizing or downsizing, your accrued home equity can be a powerful asset in today's real estate landscape. If you're curious about your current home equity and how it can facilitate your next move, please call or email me. I look forward to hearing from you.