Equity Matters A LOT… Just Ask Freddie Mac
blog-single-post-photo.jpgimage_shadow.png

Equity Matters A LOT… Just Ask Freddie Mac

Equity Matters A Lot... Just Ask Freddie Mac | Keeping Current Matters

There are many reasons, both financial and non-financial, that homeownership remains an important part of the American Dream. One of the biggest reasons is the fact that it helps build family wealth. Recently, Freddie Mac wrote about the power of home equity. They explained:

“In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home's appreciation. In a nutshell, your money is working for you and contributing toward your financial future.”

They went on to show an example where a person bought a home for $150,000 with a down payment of 10% ($15K), resulting in a loan amount of $135,000. The buyer secured a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance).

The chart below demonstrates the home equity built after 7 years of making mortgage payments and assuming the historic national average of 3% per year home appreciation:

Home Equity Earned | Keeping Current Matters

And that number continues to build as you continue to own the home.

Merrill Lynch published a report earlier this year that showed the average equity homeowners have acquired by certain ages.

Average Home Equity | Keeping Current Matters

Bottom Line

Home equity is important to building wealth as a family. Referring to the first scenario above, Freddie Mac explained:

“Now, if you continued to rent, and made the same payment of $684.03 per month, you'd have zero equity and no means to build it. Building equity is a critical part of homeownership and can help you create financial stability.”

Put your housing cost to work for you and your family. Meet with a real estate professional today to explore your options.

Comments
Listings
icon_listings_gray.jpgimage_shadow.png
FOR SALE

165Acres

Trindle Road,
Carlisle, PA 17013

$9,000,000

Listed ByWOLFE & COMPANY REALTORS

MLS® #10246719 MLS® # 10246719 (Active)
10185038.JPGimage_shadow.png
FOR SALE

100Acres

701 York Road,
Gettysburg, PA 17325

$8,000,000

Listed ByMILLER &ASSOC REAL ESTATE

MLS® #10185038 MLS® # 10185038 (Active)
10185037.JPGimage_shadow.png
FOR SALE

0SqFt

701 York Road,
Gettysburg, PA 17325

$8,000,000

Listed ByMILLER &ASSOC REAL ESTATE

MLS® #10185037 MLS® # 10185037 (Active)
10275918.JPGimage_shadow.png
FOR SALE

204Acres

00 Cramer Road/Ritner Highway,
Shippensburg, PA 17257

$7,900,000

Listed ByRSR, REALTORS, LLC

MLS® #10275918 MLS® # 10275918 (Active)
CPML10285791.JPGimage_shadow.png
FOR SALE

157.90Acres

1604 Pine Road,
Carlisle, PA 17015

$7,000,000

Listed ByRE/MAX ASSOCIATES OF LANCASTER

MLS® #10285791 MLS® # 10285791 (Active)

PAGE 1  OF  1151 1 2 3 4 5 »

Categories
Recent Posts
Archive
Contact Info
Contact Info
BrokersRealty.Com

6 Offices to Serve You

PA License RB-0631826-C
Lewisberry  Pennsylvania 17339

Office and Fax 888-774-8488

Translator
Social Media

© 2016 Central Penn Multi-List®. All rights reserved.

Information Deemed Reliable, but Not Guaranteed. The property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this web site comes in part from the participating Brokers.

Last updated on Sep 27, 2016.

© 2016 Greater Wilkes Barre MLS®. All rights reserved.

Information Deemed Reliable, but Not Guaranteed. The property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this web site comes in part from the participating Brokers.

Last updated on Sep 27, 2016.

© 2016 Keystone MLS Network®. All rights reserved.

Information Deemed Reliable, but Not Guaranteed. The property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this web site comes in part from the participating Brokers.

Last updated on Sep 27, 2016.

© 2016 Pocono Mountains AOR®. All rights reserved.

Listings displayed are not necessarily the listings of the provider.

Information Deemed Reliable, but Not Guaranteed. The property information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this web site comes in part from the participating Brokers.

Last updated on Sep 27, 2016.

websitebox