Americans have reached a landmark when it comes to property and equity for the first time in history. Never before have we been witness to this level of equity in our homes. According to 2017 statistics, real estate values have increased, and we’ve gathered momentum to the point that we are now far ahead of the pre-housing crisis levels witnessed in the United States. Americans now have over $13 trillion in homeowner’s equity.
Research shows that due to an increase in house prices, many Americans saw a windfall of cash in the form of equity in their homes. Corelogic reports that the average amount of cash that a homeowner saw added to the value of their homes was $15000. Certain states saw an even higher growth, showing averages of up to $40,000 and higher in Washington and California.
Some folks may want to investigate refinancing their homes to try and get the maximum benefit and a lower interest rate. Getting advice to try and figure out which is the best mortgage for you is the first step to take.
After sifting through all the offerings out there, it might essentially come down to a choice between taking out a 15 or 30-year mortgage. Of course, paying your loan off in half the time means less time paying off interest. You could save over half the cost by paying it off with a 15-year fixed rate loan.
When you consider that the average rent paid for a studio apartment in the United States is just under $1,060 monthly, and a three bedroom apartment will set you back an average of $1529, the average mortgage payment of $1,030 is an excellent investment.
A study by Enterprise Community Partners and the Harvard JCHS estimated that by the year 2025, the number of households that had to spend half or more of their income on rent every calendar month will rise at least 11%. The people who will be paying such high rents are being termed, “the severely cost-burdened.”
Owning your home would appear to be a far better way to spend your money than spending it on rent that is just going up year after year with no hope of generating any wealth or equity for you in the future.
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