A recent national survey by Fannie Mae shows that many homeowners continue to underestimate the amount of equity they have in their homes. This chart shows how many homeowners think they are “under-water” with their mortgage. What’s “under- water” and why should you care?
A house is “under-water” when the amount you owe on your mortgage is more than the value of your home. It is the reverse of equity in your home. To find out whether your home has equity, find out the market value of your home. Look on Zillow-they give an estimate of your home’s value. Then look at your last mortgage statement, it has total amount due. If you have a second mortgage, add these totals together. Then subtract the total debt from the market value of the home. If it’s a positive number-congratulations, that’s your equity. If it’s a negative number, I’m sorry, but your home may still be “under-water”.
Understanding your home equity can impact many life choices. Knowing the approximate dollar amount of your home equity can help you make better- informed decisions about refinancing, moving, downsizing or moving into bigger accommodations. Changing jobs, neighborhoods, you need to know your numbers before you can decide what to do.
The biggest challenge with this misperception on home equity is the fact that so many people could benefit from refinancing. The rates are extremely low, banks are offering low cost packages.
I’m not advocating taking on additional or unnecessary mortgage debt, but I am advocating for you to be better informed so you can make major life decisions with confidence.
Mortgage rates are at all time low’s and if you have not looked at refinancing in the past couple of years; now may be a good time. If your would like to learn more about your options please fill out my contact form below and let’s have a quick chat.
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Kate's a practicing Attorney for over 20 years. She is a pet rescuer and a strong supporter of pets Rights. Kate expertise is Real Estate, Probate, Estate Planning, Personal Injury, and Business contracts. Kate is happy to discuss any legal or pet matter you may have and if she cannot help; she is more than happy to point you in the right direction. Kate Forte 17 Good Hill Rd Woodbury Ct 06798 Office 203-598-8847 Fax 203-841-1116