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TIPS ON BUILDING EQUITY
The difference between how much your home is worth and what you
owe is called your home's equity. Suppose your home is appraised at
$300,000, and your mortgage is $215,000, the equity value of your
home is $85,000.
The value of your equity is an important part of your total
net value.
Building equity on your own:
There are two ways you can create/increase the equity worth
of your home. Paying your mortgage regularly, on time every month
will help decrease the amount you owe, and increase the value of
your home. Paying more than the required monthly premium will help
expedite the equity increase.
Another means for building home equity is by making
home
improvements and add-on. For example, using the same numbers as
above, lets say you home is worth $300,000, and your mortgage is
$215,000. You have recently added a pool to your home that helps
increase the value of your home by $10,000, making your home worth
$310,000. Instead of $85,000 in equity, you know have $95,000.
Fair market value
and equity worth:
Over time , the market value of your home is going to increase,
resulting in you having more equity. For example, lets say you
purchased your home in 2000 for $200,000. A recent appraisal values
your home at $300,000. This means you have $100,000 in disposable
equity.
Star Loan Services offers great rates for good and bad credit
home equity loans!
APPLY NOW FOR A HOME EQUITY LOAN!
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