Do you have equity in your home? 10 to 15 years ago, while housing prices were soaring, people were buying homes and many were taking out maximum mortgages. Many mortgages were written that had no down payment involved. And many of those loans had mortgages which created negative equity. Mortgage rates were extremely low compared to the regular market, and the lenders would take the difference in the interest payments and add them to the principal. As result many people had serious issues when housing prices dropped precipitously. Many will put into a negative equity situation. And this meant that if they wanted to sell, and they didn’t have a pile of cash sitting under the mattress, they either couldn’t sell or they would have to go in a short sale.
The good news is that this has turned around. In the first quarter of 2001 17, 91,000 properties changed from negative equity into positive Equity. This is great news for the country and for the economy.
We are now in a situation where the vast majority of mortgaged properties in this country have equity. And this is good for homeowners.
So do you have positive equity in your home? Here’s a really easy way to find out.
Call a good Realtor, better yet call Bunny and Art. After all, you are reading our blog. That should tell you that you value our expertise. We can do a market analysis on your home and tell you what the sale value would probably be. And we can give you a good idea of how much you would be able to walk away with after selling your house. Just figure in the closing expenses, taxes and Realty commission fees. And then you can deduct your mortgage balance from that.
Would it be good to have that information available to you?