Find Out What Your Homes Current Market Value Is
Finding out your home’s equity simply means you’ll be finding out what your house is worth in the current economy.
There are a few ways to do this – some people find online resources that will give them an estimate.
Another way is to have your home appraised. You can do this through a company or an independent appraiser.
Either option can work just fine. An appraiser may have some cost, whereas many of the online options are free.
However, an appraisal might be a little more accurate, so be sure to weigh the pros and cons.
Subtract the Balance Of Your Mortgage
Once you are confident you know what the value of your home is, you can head over to your bank and find out what you still owe on your home mortgage.
Once you have that number, subtract your mortgage from the market value estimate of your home. Now you have your home equity!
How To Increase Your Home Equity
Once you know your home equity, you may be wondering if it is possible to increase that amount.
Thankfully, it is!
Bank Of America suggests,
“If your home’s value decreases over time, your equity may decrease, too.
But, if it remains stable, you can build equity by paying down your loan’s principal and lowering your loan-to-value ratio.
If your payments are amortized (that is, based on a schedule by which you’d repay your loan in full by the end of its term), this happens simply by making your monthly payments.
If you hope to lower your LTV ratio more quickly, consider paying more than your required mortgage payment each month.
This helps you chip away at your loan balance.”
So don’t be discouraged if your home equity is not where you wish it was yet.
If you try these suggestions and put some work into it, your home equity will be raised in no time.
Golden Eagle Mortgage Group in Hollister, California is here to serve you and help you reach your home mortgage goals.