What is Home Equity and How to Increase it

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The real estate market is experiencing a surge in home equity. In properties nationwide, equity is rising, mortgage debt is falling, and underwater loans are shifting so that homeowners can keep their heads above water.

For everything you need to now about home equity and how to increase it, Red Blue realty can provide an insiders knowledge about the good news of rising equity.

Equity represents the difference in the amount a house is worth in the real estate marketplace, and how much an owner owes on a mortgage.

In the years between 2007 and 2011 both equity and value for home owners declined precipitously. But at the end of 2012, there was good news in site, as a major, 20% gain in equity rose throughout the U.S. The overall equity value rose by $1.3 trillion dollars.

Red Blue Realty can offer expert advice about home equity as a measurement of wealth. The recent gain marks a significant turn around in real estate values, and it’s a significant factor in the improvement of sales and increase in buyer interest in the real estate market.

According the to real estate site over 135 metro markets out of 177 nationwide have risen greatly over the course of 2012. This significant gain has certainly reached the Los Angeles marketplace, and Red Blue Realty can assist homeowners in gaining even more homeowner equity.

The first step in improving equity begins with making a down payment on a property. The larger the amount of a down payment that’s made, the more equity there is in the home initially. The second step to increase equity is with the mortgage payments themselves. Homeowners can pay slightly above the principal required monthly, or make two principal payments per month, to increase equity. If a home owner has an interest only loan, payments toward the principal should be made, even if not required, to make an inroad into equity improvement.

The third step for improving equity in a home is improving the home itself. A home owner can take advantage of the information a real estate team such as Red Blue Realty can offer in regard to an educated determination of what home improvements work best to increase home value. From sustainable gardens to solar energy installation, new appliances, security systems, or just a fresh coat of paint, Red Blue Realty can offer advice that will dramatically increase the equity in your home.

With current prices bottoming out and fewer homes on the market, home equity is bound to rise, and sellers will find an eager marketplace ready to purchase property. Buyers will find improved properties and make mortgage decisions based upon the soundest foundation of equity.

In the Los Angeles real estate market, both buyers and sellers can utilize the resources and tips that come from a real estate professional to increase home equity and navigate the upswing that we are experiencing right now.

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