Unlocking Your Home Equity to Fuel Your Next Move

Are you a homeowner dreaming of a move but concerned about higher mortgage rates? You're not alone. Today's market can feel like a double-edged sword. However, there's a hidden gem waiting to be unlocked: your home equity.

Understanding Home Equity:

Home equity is essentially the difference between your home's current market value and your remaining mortgage balance. As Freddie Mac explains: ". . . your home's equity is the difference between how much your home is worth and how much you owe on your mortgage." Over time, your equity grows through two key factors:

• Loan Payments: As you consistently make your mortgage payments, the outstanding loan amount decreases, increasing your equity.
• Rising Home Values: Recent years have witnessed significant home price appreciation in Westchester. This means your home's value has likely grown, further boosting your equity.

Data from the Census and ATTOM reveals a positive trend: more than two-thirds of homeowners have either paid off their mortgages completely or have at least 50% equity in their homes.

Leveraging Your Equity for a Smooth Move:

The equity you've built can be a powerful tool to navigate the current market and make your move a reality. Danielle Hale, Chief Economist for Realtor.com, offers valuable insight:

"With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion. This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase."

Here's how your equity can empower your next move:

• Become an All-Cash Buyer: If you've owned your Westchester home for a substantial period, your equity might be enough to purchase your next home outright. This eliminates the need for a mortgage and frees you from concerns about interest rates.
• Make a Substantial Down Payment: Utilize your equity for a larger down payment on your new home. This reduces your loan amount and minimizes the impact of higher mortgage rates.

Determining Your Home Equity:

The first step is to calculate your equity. You'll need two key figures:

1. Current Mortgage Balance: This can be found on your monthly mortgage statement.
2. Current Home Value: While appraisals can be expensive, here's a valuable tip: contact a local real estate agent! At the Jeffrey Real Estate Team, we can provide you with a Professional Equity Assessment Report (PEAR) free of charge. This report offers a reliable estimate of your home's current market value.

Unlocking Your Move with the Jeffrey Real Estate Team:

By connecting with a trusted local agent and calculating your equity, you're well on your way to achieving your dream move. We're here to guide you through the process and help you leverage your equity for a smooth and successful transition.

Ready to Explore Your Options?

Contact the Jeffrey Real Estate Team today! Let's discuss your specific situation and explore how your home equity can pave the way for your next exciting chapter in Westchester.