The Benefits of Growing-Equity in Your Home
Over the past few decades, the way we view homeownership has changed. Unlike previous generations who bought a home with a 30-year mortgage and celebrated the day they made their last payment, today’s home buyers rarely stay in their home that long. As a result, the way we view mortgages has changed as well and open buyers are not Growing-Equity in their homes the way we used to.
There are benefits to Growing-Equity and paying down the loan, here are just a few.
- Flexibility–Having equity in your home gives you the flexibility to move if you need to or want to. For homeowners who plan to either buy a large home or perhaps downsize, having equity allows you to not only put money down on a new loan but pay for moving and closing costs.
- SafetyNet–Life is full of unexpected expenses. Job loss or relocation, an unexpected illness, accident, natural disasters are a few examples. The equity in your home can help you navigate these unexpected costs with a line of credit or the proceeds from a sale.
- Asset Recovery–Many homeowners over the last couple of decades have found themselves underwater in their homes; negative equity. By either making additional principal payments on the loan or reaping the effect of higher home values, building equity can help create wealth and turn a negative asset into a positive.
Homeowners might not plan to stay in their homes as long as their parents and grandparents, but there are still great reasons to focus on building equity in their homes. A home is an asset, and treated properly is a wealth-building tool, unlike any other option. Noone wants to be left in the cold when tragedy strikes. Ask your helpful #Agent4Life for more tips so you can grow!