Growing up in northern New Jersey, most of us were taught by our parents and grandparents that owning a home was a smart financial move to make. We've heard the term "equity", but other than a vague idea, we may not completely understand how equity through home ownership truly does impact our financial security now and in our future.
Especially right now, with all eyes on the economic situation, as New Jersey opens up and we consider how real estate drives our recovery process. Whether you choose urban life or a suburban lifestyle, owning property can be and is an excellent foundation for financial stability.
Put in the clearest terms, equity is the difference between current value of a property and any amount owed to others, such as a mortgage, line of credit balance or other lien. There are several very significant benefits to building equity, not the least of which is the actual cash value of your home.
Home owners tend to enjoy lower interest rates on other types of loans such as auto loans, credit cards and personal loans. According to the research, homeowners are also more likely to enjoy better health, too! That's an added bonus that easily translates financially to lower insurance rates and less medical expenses.
Building equity in a property does involve more than just paying down the mortgage, though.
- Maintenance plays a major role in market value which directly speaks to equity value
- Upgrades according to current trends and buyer desires enhance value
- Curb appeal which includes landscaping adds or subtracts to the bottom line
Discover how much your home sale could net you, or search the homes available for sale: https://njrealestatehomesearch.com