February 2024 Newsletter

Home Equity Can Be a Game Changer When You Sell

Are you on the fence about selling your house? While affordability is improving this year, it’s still tight. And that may be on your mind. But understanding your home equity could be the key to making your decision easier. An article from Bankrate explains:

“Home equity is the difference between your home's value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.

You'll start off with a certain level of equity when you make your down payment to buy the home, then continue to build equity as you pay down your mortgage. You'll also build equity over time as your home's value increases.”

Think of equity as a simple math equation. It's the value of your home now minus what you owe on your mortgage. And guess what? Recently, your equity has probably grown more than you think.

In the past few years, home prices skyrocketed, which means your home's value – and your equity – likely shot up, too. So, you may have more equity than you realize.

How To Make the Most of Your Home Equity Right Now

If you're thinking about moving, the equity you have in your home could be a big help. According to CoreLogic:

“. . . the average U.S. homeowner with a mortgage still has more than $300,000 in equity . . .”

Clearly, homeowners have a lot of equity right now. And the latest data from the Census and ATTOM shows over two-thirds of homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below):

That means roughly 70% have a tremendous amount of equity right now.

After you sell your house, you can use your equity to help you buy your next home. Here’s how:

Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. Investopedia states:

“You may want to pay cash for your home if you're shopping in a competitive housing market, or if you'd like to save money on mortgage interest. It could help you close a deal and beat out other buyers.”

Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports explains:

“Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”

The Easy Way To Find Out How Much Equity You Have

To find out how much equity you have in your home, ask a real estate agent you trust for a Professional Equity Assessment Report (PEAR). est data together, then adjusting your strategy based on today's rates, you'll be better prepared and ready to buy a home.

Bottom Line

Planning a move? Your home equity can really help you out. Let’s connect to see how much equity you have and how it can help with your next home.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Local Data. National Insights.

In our area this month…
Our market sits established in a strong sellers’ market, especially in the Schaumburg area.
Across the NW Suburbs of Chicago, inventory remains low and competition remains high. But new listings are coming on the market here post Super Bowl - welcome SPRING MARKET!
If you are considering selling your home, now might be your chance to snag all the benefits this market has to offer. Connect with me to learn more about your unique situation.

Cheddar Buffalo Cauliflower Soup

Ingredients

1 large head cauliflower, cut into small florets (about 5 to 6 cups cauliflower florets)

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2 tablespoons olive oil, divided
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Freshly ground salt and pepper
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1 head of garlic
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1 medium yellow onion, diced
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3 cups vegetable broth (or sub chicken broth if not vegetarian)*

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½ teaspoon salt, plus more to taste
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Freshly ground black pepper
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¼ to ⅓ cups mild or medium buffalo sauce, depending on your heat preference

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4 ounces sharp cheddar cheese, shredded
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For garnish:

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Extra shredded cheddar on top
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1 to 2 scallions, sliced (green part only)

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Chopped chives
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Buffalo sauce, for drizzling
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Directions

Preheat the oven to 400°F. Line a baking sheet with parchment paper.

Cook the veggies: Add cauliflower florets to the pan, drizzle with 1 to 2 tablespoons of olive oil and season generously with salt and pepper; toss to combine. For the garlic: peel and discard the outer papery layers of the whole garlic head. Leave the skins intact of the individual cloves. Using a sharp knife, cut ¼ inch off from the top of the cloves so that the individual cloves of garlic are exposed. Place garlic in a medium piece of foil and drizzle the top of the garlic with olive oil then loosely wrap in the foil and place on the pan with the cauliflower. Roast cauliflower and garlic for 30-35 minutes, flipping halfway through, until cauliflower is nice and golden, tender and caramelized.

Cook the onion: While the cauliflower is cooking, add 1 tablespoon olive oil to a pot and place over medium heat. Once oil is hot, add diced onion and saute for 5-7 minutes until onion is translucent.

Blend the soup: In a large blender add the onion, roasted cauliflower, roasted garlic, broth, salt and pepper. Blend until smooth, about 1 minute, then add back to the pot and place over medium heat. Tip for the garlic: allow it to cool enough to touch then simply squeeze out the roasted garlic from the skin.

Finish it off: Bring soup to a light simmer over medium-low heat, then stir in 2 or 3 tablespoons buffalo sauce and cheddar cheese. Simmer for 5 to 10 minutes, taste and add more buffalo sauce if you want to kick it up. Buffalo sauces can vary in spice and flavor so start small and increase to suit your preferences. Garnish extra grated sharp cheddar cheese, scallions, chives and a drizzle of buffalo sauce. Serve with crusty toasted sourdough or your favorite bread of choice. Serves 4.