We Buy Fast Houston Houses is going to explain the home equity concept using the simplest of terms out there. Let’s say you’ve been a homeowner in Houston, Texas for a couple of years now and you’ve decided it’s time to move out and look for a different place. Maybe you’re moving due to personal reasons or other obligations. It doesn’t really matter. But then, before you move, you have to find a buyer for the house. The money that you’re get after selling my home at market value, minus the mortgage, is the home equity.
Sound good so far? Now We Buy Fast Houston Houses is going to go over the details and let you know about some of the cool things that come with owning my house in Houston, Texas.
Calculation my home equity in Houston, Texas
It’s normal to be curious about the amount of home equity you have. And to find that out is pretty simple. The two things that are essential are; the property real estate market value, and the amount you owe as mortgage. As we’ve stated before, the home equity is what you get after subtracting the mortgage from the home’s market value.
Here’s a fine example: Let’s say my house has a market value of 600,000 dollars. And, you have a mortgage loan balance of 300231 dollars. if you subtract 300231 dollars from 600,000 dollars, you’ll be left with 299769 dollars. That’s your home equity. The amount that you’ll be left with once you sell my home fast and pay off the mortgage balance.
What’s the significance of a home equity?
As you can see, this is something that you’ll definitely want to have and see grow. If you can work hard to make it increase every year, you’ll have a lot of money to brag about if you succeed to sell my home fast in Houston, Texas.
As a homeowner in Houston, Texas, you’d never want to find yourself in a dicey situation where the property has no equity, or worse, where the mortgage loan balance is greater than my homes market value. A situation we often call being “upside-down” or a negative equity.
Knowing exactly how much equity you have on my Houston house in Texas can help you make sound financial decisions. The kind of decisions that will help you achieve financial liberation down the line. So can you now see why homeowners usually keep checking on it every so often?
For instance, if you ever think of getting another house, it would be helpful to know if you’ll be able to settle the down payment. If you’ve always wanted to travel the world, it won’t hurt to know whether or not you could afford it. And what about your kids’ college tuition?
By the way, you can sell and keep more of your home equity if you work with a cash buyer. We Buy Fast Houston Houses should be top of your list of buyers. Call us if you want to learn more about our home buying offer.