Equity In real estate, equity represents the value of ownership in a property. It is the difference between the fair market value of the property and the amount of money you owe on the mortgage. For example, if you own a house with a market value of $500,000 and you owe $200,000 on the mortgage,… Continue reading Terminology Every Homebuyer Should Know – Part 2
Affordability Refers to the financial feasibility of a potential home buyer to purchase a home. It primarily takes into account the buyer’s income, down payment, and monthly debts. Appraisal An appraisal is an unbiased professional opinion of a home’s value. It is the estimation of a home’s current market value. This valuation is typically calculated… Continue reading Terminology Every Homebuyer Should Know – Part 1
If you’re someone that’s postponing selling your home because of low inventory fears, or one that’s delaying buying a home because of interest rate fears, new construction may be the answer for both! According to an article by Keeping Current Matters: “Newly built homes are becoming an increasingly significant part of today’s housing inventory. According… Continue reading New Construction Should Be Part of Your Home Search
On the fence about buying a home? The long-term financial benefits of home ownership should be enough to push you off of it. The Federal Reserve releases a Survey of Consumer Finances (SCF) every three years. The latest report shows the average homeowner’s net worth is almost 40X greater than a renter’s (see graph below): This gap… Continue reading Can You Afford Not to Be a Homeowner?
Understanding the costs or expenses you’ll be confronted with is critical when putting together a savings plan to purchase a house. Here are a few of those expenses: The Down Payment – This is probably the one everyone thinks of first, and for good reason. We’ve been conditioned over the years to think that a… Continue reading Saving To Buy a House?