In the world of real estate, there are a lot of terms to know and understand. One of the important terms to know is home equity. So what is home equity, exactly? According to Wikipedia, “home equity is the market value of homeowner’s unencumbered interest in their real property.” In other terms, home equity is your home’s real property value.
Using home equity has its advantages which include lowered interest rates due because they are considered secured loans. When it comes to your purchasing a home, it serves as collateral which means lenders can offer competitive interest rates and may have little or no closing costs.
However, it’s also important to know there are disadvantages around using home equity. Because your home serves as collateral, if you are unable to repay your loan, you may end up having to foreclose on your home.
If you are ready to take the next step towards homeownership, we are here to help you find your dream home. Today is the day to move closer to your dream of owning a home and building home equity.
Give us a call today—we are here to answer all your questions and concerns.