Here’s How to Find It
Before you start pulling up your floorboards or rummaging around in the attic looking for cash, we should probably tell you that what we’re talking about here is home equity. Equity is basically the difference between the current value of your home and how much you owe on it.
The good news is that you don’t actually have to sell your house to access your home equity. You can tap into it with a home equity loan, home equity line of credit (HELOC) or even a reverse mortgage. That’s money you can use for a renovation, college tuition, a new car, retirement or a financial emergency. And remember your home equity factors into your personal net worth.
Did you know that a couple of years ago, the U.S. Census Department looked at how much equity Americans had in their homes? Based on that information, it’s been noted that the average homeowner aged 45-54 had a net worth of about $84,000 — BUT… when you take home equity out of the equation, that number plummets to only $25,000. The bottom line is that you want home equity, and you want to build as much of it as quickly as possible for your financial future.
So just how can you do that? We’re glad you asked. We’ve put together this nifty graphic that shows how the one easy change of making biweekly mortgage payments can help you build significantly more equity surprisingly quickly. Have a look and see if you’re not shocked at the equity building difference biweekly payments can make.