While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move 다운로드. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home 세실고 다운로드. So, what exactly is equity?
The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage 다운로드. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity 주토피아 ost 다운로드.
A recent study by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes 다운로드. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:
“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth 호텔델루나 15화 다운로드. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”
For most families, their home is their largest financial asset 검사 외전. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they’re building the net worth of their landlord 다운로드.
Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we’ve seen over the last several years 맨온파이어. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.
Source: Real Estate with Abbey Wright