{"id":1802,"date":"2021-06-23T12:37:30","date_gmt":"2021-06-23T12:37:30","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1802"},"modified":"2021-06-23T12:37:30","modified_gmt":"2021-06-23T12:37:30","slug":"homeowner-wealth-increases-growing-equity-year","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/homeowner-wealth-increases-growing-equity-year\/","title":{"rendered":"Homeowner Wealth Increases Through Growing Equity This Year"},"content":{"rendered":"
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Homeowner Wealth Increases Through Growing Equity This Year<\/p><\/div>\n

Building financial wealth and stability remains one of the\u00a0top reasons<\/a>\u00a0Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the\u00a0Urban Institute,<\/em>\u00a0Home Ownership is Affordable Housing<\/em><\/a>, author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments:<\/p>\n

\u201cThe principal portion that reduces the loan balance builds the homeowner\u2019s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.\u201d<\/em><\/p><\/blockquote>\n

But home equity \u2013 the difference between the value of your home and what you currently owe \u2013 isn\u2019t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth.<\/p>\n

As\u00a0Freddie Mac<\/em>\u00a0explains<\/a>:<\/p>\n

\u201cHomeownership has cemented its role as part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This \u2018wealth\u2019 is built, in large part, through the creation of equity\u2026Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

Homeowners Continue To See Equity Increase<\/strong><\/h4>\n

CoreLogic<\/em>\u00a0recently published their latest\u00a0Homeowner Equity Insights Report<\/em><\/a>, and it shows continued growth in equity amidst record home price appreciation. The report provides several key takeaways, all of which point to rising wealth for homeowners:<\/p>\n

    \n
  1. The average equity gain of mortgaged homes during the past year was\u00a0$33,400<\/strong><\/li>\n
  2. The current average equity of mortgaged homes is greater than\u00a0$216,000<\/strong><\/li>\n
  3. There was a\u00a06% increase<\/strong>\u00a0in total homeowner equity over the past year<\/li>\n
  4. Total U.S. homeowner equity has reached nearly\u00a0$1.9 trillion<\/strong><\/li>\n<\/ol>\n

    Here, you can see the equity gains by state:<\/p>\n

    \"\"

    Average Year-Over-Year Gains in Equity<\/p><\/div>\n

    Equity Provides Homeowners with Flexibility<\/strong><\/h4>\n

    In addition to being a critical tool in building wealth, a homeowner\u2019s equity also provides significant flexibility. When you sell your house, the accumulated equity comes back to you in the sale. Recent increases in home equity coupled with record-low mortgage rates mean it could be the perfect time for homeowners looking to make a move.<\/p>\n

    Mark Fleming,\u00a0Chief Economist<\/em>\u00a0at\u00a0First American<\/em>,\u00a0notes<\/a>:<\/p>\n

    \u201cExisting homeowners today are sitting on record amounts of equity.<\/em><\/strong>\u00a0As homeowners gain equity in their homes, the temptation grows to list their current home for sale and use the equity to purchase a larger or more attractive home.\u201d<\/em><\/p><\/blockquote>\n

    Increasing equity also helps families facing challenges brought on by the pandemic. Frank Martell,\u00a0President and CEO\u00a0<\/em>of\u00a0CoreLogic<\/em>, explains in the recent\u00a0Homeowner Equity Insights Report<\/em>:<\/p>\n

    \u201cHomeowner equity has more than doubled over the past decade and become a crucial buffer for many weathering the challenges of the pandemic<\/em><\/strong>. These gains have become an important financial tool and boosted consumer confidence in the U.S. housing market, especially for older homeowners and baby boomers who\u2019ve experienced years of price appreciation.\u201d<\/em><\/p><\/blockquote>\n

    Bottom Line<\/strong><\/h3>\n

    Home equity has always been a powerful wealth-building tool, and homeowners continue to see their financial stability increase. Let\u2019s connect today so you can better understand how much equity you have in your current home or if you\u2019re ready to take the next step in building your savings as a homeowner.<\/p>\n

    Contact us:<\/strong>
    \nPHP Houses
    \n142 W Lakeview Ave
    \nUnit 1030
    \nLake Mary, FL 32746
    \nPh:\u00a0(407) 519-0719<\/span>
    \nFax:\u00a0(407) 205-1951<\/span>
    \nemail:\u00a0info@phphouses.com<\/p>\n

    Let\u2019s Connect:<\/strong>
    \n    Facebook<\/a>
    \n    Linkedin<\/a>
    \n    Twitter<\/a>
    \n    Instagram<\/a><\/p>\n

    THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

    Building financial wealth and stability remains one of the\u00a0top reasons\u00a0Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. Finish Reading Homeowner Wealth Increases Through Growing Equity This Year<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,15,306,129,190,18,27,128,52,32,203,176,355,42,40,63,20,12,24,48,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1802"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1802"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1802\/revisions"}],"predecessor-version":[{"id":1805,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1802\/revisions\/1805"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}