Welcome to the UtahHomeGuide.com Blog

2019-09-19 08:27:55
One of the Top Reasons to Own a Home

We all need a place to live, why not make it yours? Let's talk homeownership.

One of the Top Reasons to Own a Home | MyKCM

One of the benefits of homeownership is that it is a “forced savings plan.” Here’s how it works: You make a mortgage payment each month. Part of that payment is applied to the principal balance of your mortgage. Each month you owe less on the home. The difference between the value of the home and what you owe is called equity.

If your home has appreciated since the time you purchased it, that increase in value also raises your equity. Over time, the equity in your home could be substantial. Recently, CoreLogic revealed that the average homeowner gained more than $65,000 in equity over the last 5 years.

Unlike last decade, homeowners are no longer foolishly tapping into that equity. In 2006-2008, many owners used their homes like an ATM by pulling equity out to purchase new cars, jet skis, or lavish vacations. They were pulling out cash (equity) from an appreciating asset, and then spending it on rapidly depreciating items. That is not happening anymore.

Over 50% of Homes Have at Least 50% Equity

The number of homeowners that currently have at least 50% equity in their home is astonishing. According to the Urban Institute, 37.1% of all homes in the country are mortgage-free. In a home equity studyATTOM Data Solutions revealed that of the 62.9% of homes with a mortgage, 25.6% have at least 50% equity. That number has been increasing over the last five years:One of the Top Reasons to Own a Home | MyKCMBy doing a little math, we can see that 53.2% of all homes in this country have at least 50% equity right now. Of all homes, 37.1% are mortgage-free and an additional 16.1% with a mortgage have at least 50% equity.

Bottom Line

Homeownership is different than renting. When you own, your housing expense (the mortgage payment) comes back to you in the form of equity in your home. That doesn’t happen with your rent payment. Your rent helps build your landlord’s equity instead.

 
Blog Archive
2019-09-19 08:27:55
One of the Top Reasons to Own a Home

2019-09-05 18:43:14
Everybody Calm Down! This Is NOT 2008

2019-04-02 14:10:37
Homebuyers Shouldn’t Worry About 2008 All Over Again

2018-12-04 13:46:40
December Is Upon Us and for the Skiers and Snowboarders It Has Been Nothing Short of Awesome

2018-11-15 14:35:40
Are Homeowners Renovating to Sell or to Stay?

2018-09-27 20:37:19
What is the Difference Between Falling Home Prices Falling and Softening

2018-08-15 09:39:27
Time to leave your starter home behind and find your next place?

2018-07-25 09:59:35
Retirement? Does Your Current Home Meet Your Needs?

2018-07-12 11:17:47
How Long Do Most Families Live in a House?

2018-06-06 15:32:03
Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years

2018-05-07 09:24:01
What Does Time Cost You?

2018-04-26 16:48:34
“Short of a war or stock market crash..'

2018-04-16 10:15:13
Getting Pre-Approved Should Always Be Your First Step

2018-03-20 10:17:31
Dreaming of a Luxury Home? Now’s the Time!

2018-02-23 11:23:20
Ready, Set, GO!!! What everyone needs to know about the Mortgage Process

2018-02-01 11:28:50
Bidding Wars Abound. YOU CAN WIN THE WAR

2018-01-24 11:00:47
Smart Homes

2018-01-10 08:56:34
FICO® Scores on Approved Home Loans Again

2018-01-03 09:52:13
The Benefits of Homeownership Go Beyond the Financial

2017-12-26 15:32:57
Tax Reform & Housing: A Reference Guide

2017-12-19 13:34:14
Rents Are on the Rise: Don’t Get Caught in the Rental Trap!

2017-12-14 09:52:37
Homeownership in 2018

2017-12-12 15:18:55
December 2017

2017-11-10 10:17:27
Veterans Affairs Loans By the Numbers

2016-09-14 17:33:55
Why Getting Pre-Approved Should Be Your First Step

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.