Tag Archives: value of home

Defining home equity

Home equity is an important source of wealth for homeowners. According to a study by the Federal Home Loan Mortgage Corporation (Freddie Mac), access to home equity contributes to the purchasing power of homeowners. The study also suggests that home equity has a larger impact on consumer spending than wealth derived from stock equity.

Market Value

Home equity derives in part from the market value of your home. The basic market value of your home is based on the price a buyer is willing to pay and the price a seller is willing accept. Market value is influenced by prevailing economic conditions, the supply and demand for housing and the cost of mortgage loan funds. To account for the effects of all these factors on market value, compare your home to the sale price of similar homes in your neighborhood.  Contact the appraisers at www.scappraisals.com for your home value questions.

Outstanding Debt

The market value of your home is compared against the outstanding debt on your mortgage. The outstanding debt on your home is based on the principal of your loan. The principal is the amount you borrowed to finance the purchase of your home. Your monthly mortgage payments pay down the principal and pay your lender interest.

read more at: http://homeguides.sfgate.com/define-home-equity-9228.html

disclaimer: for information and entertainment purposes only

Homebuying: Should You Take The Plunge?

sale

Spring is typically the busiest season for homebuying, and this year the housing market is already showing signs of coming back to life.

According to the National Association of Realtors, the median price for U.S. homes was $173,600 in January, the latest month of available data. That’s up 12.5 percent from the same period in 2012, and is the largest year-over-year increase since 2005.

Have questions about the market?  Contact the appraisers at www.scappraisals.com

What’s more, even though home prices are beginning to rise, affordability continues to improve — especially for first-time buyers. The NAR’s first-time homebuyer affordability index reached a record high of 127.7 in 2012 (the higher the number, the better). In 2006, at the real-estate market’s peak, the index stood at 71.3.

Low mortgage rates and an improving economy are helping make homebuying more attractive today. Should you take the plunge? Consider the following.

Renting vs. owning

In many areas of the country, it is now cheaper to own a home than it is to rent. But much of that advantage still depends on the size of your down payment, the interest rate you’ll pay on a mortgage and the amount of time you plan to stay put.

Read more: http://www.chicagotribune.com/classified/realestate/buy/sc-cons-0321-started-20130323,0,5340581.story

Disclaimer: for information and entertainment purposes only