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).  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.

Buying a home can be a financial stretch. With soaring home values and rising interest rates, many potential first time home buyers find saving for a down payment increasingly difficult. For many people, the main source of savings is in the form of a 401k and tapping into this resource for a home purchase is one way to find the down payment necessary to finance a new home; but should you use your 401k to buy a home? Experts are conflicted. A 401k is a retirement savings plan offered by employers which takes pre-tax earnings and deposits it into an investment account for use in retirement. The money in a 401k account can be accessed by either taking out a loan against the balance or by a straight withdrawal. A withdrawal before the age of 59.5 is also subject to a 10% penalty. Taking out a loan from a 401k account may be a viable option for potential home buyers. For one thing, a loan from your 401k should not count against your borrowing power. You also don’t need to qualify because you are borrowing from yourself. The amount you can borrow is limited, for example 50% of the balance, and typically must be repaid within 5 years. The other option is a simple withdrawal; the 10% penalty is incurred, but the value is not usually limited. Saving for a down payment can be challenging. Using your 401k to help may be a great option. Speak with your financial advisor and see if this is the right financial move for you.

Owning a home may feel like a never-ending list of to-dos. It can feel like all you do is clean and maintain your house and yard. There is a lot of truth to this, but homeownership is one of the best ways to increase wealth, so maintaining your investment is critical to your financial well-being.Surprisingly, the roof is one of the most overlooked maintenance items of the home. Set above normally eye level, often the first sign of a problem with the roof is a major leak. Before this happens to you, take a proactive look at these signs it’s time to replace your roof and avoid more expensive damage later.   Check accessible areas for signs of water damage, such as the attic. Additionally, look for evidence of gaps by noticing if there is daylight showing through the roof. Check for signs of wood rot in the attic and the eaves around the house. Water leaks can be small, but when constant seepage encounters wood, it can cause problems.Moss is another sign that moisture may be spreading. If there is moss on the roof or shingles, it means water is gathering and should be addressed. Replace missing or damaged shingles immediately. The roofing professional will also check to ensure the timbers beneath them are still dry and solid. Flashing seals, the seams between the roof and the home. Flashing can come loose over the years and must be maintained and reviewed periodically.Finally, the age of the roof may indicate that it’s time to repair or replace it. With proper maintenance, a roof may last 30 years or longer but even those under 20 years may have damage. Consult with a roofing expert as part of your regular maintenance routine to avoid expensive issues in the future.