old condominium building

The Value of Building Home Equity

There are numerous advantages to owning a home. One of the serious advantages is the equity that is built over time. As equity builds, you create a pool of money to access in trying times.

 

Home Equity

 

Equity is simply the value of a property after all debts have been deducted. If your home appraises at $500,000 with a home loan of $250,000, you have $250,000 in equity. Whether you realize it or not, this equity can get you through hard times or provide you with a funding resource. Better consult with your financial advisor and with their insurance virtual assistant so that you can be educated on this. Let’s look at some examples.

 

Emergency

 

If you get through life without any family or financial emergencies, you are one lucky person. Unfortunately, most people aren’t so lucky. Home equity can provide a financial cushion when life gets hard. You can use it to pay medical bills, legal fees, and any other expenses that arise from your particular problem. You will be extremely thankful you purchased a home if you ever run into this situation.

 

Education

 

If you’ve ever watched “The Simpsons,” you may have seen the episode where Bart and Homer go camping. Bart tells Homer a scary story, but you only see the end of it and Homer screaming in terror. The words Bart whispers are, “…and that’s how much it will cost to send Maggie [baby] to college.” It is a very funny scene until you, a parent, actually investigate the cost of college tuition. Trust me, nightmares will soon follow.

 

Home equity can put an end to college tuition nightmares. You can borrow against the equity to pay college expenses. As with an emergency situation, homeownership will give you the ability to pay the bills.

 

Making the decision to buy a home can be stressful and frightening.  Getting a realtor can help you big time! Most of them are now hiring a real estate virtual assistant to help them with some menial task, this is very effective because it can save you and your realtor’s time to accomplish the process. As time passes, you will be incredibly happy you made the leap.

 

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