| |
| |
|
Mortgage & Refinancing Information |
|
|
|
Home Equity - Is it Time to Cash Out and Move?
During the last five years, home prices have increased nationwide. In some parts of the country, notably California, home prices have doubled or even tripled. The median price of a home in the Los Angeles area is now nearly $450,000 and in the San Francisco area, the price is approaching $600,000. As the economy continues to improve, the price of housing continues to rise in California and elsewhere. Many people who have owned their homes for more than three years are suddenly finding themselves with hundreds of thousands of dollars in equity. Of course, equity is only a theoretical gain, and if the price of housing goes down, equity can go away. You only get to keep your equity as cash if you sell your home. Many homeowners are doing just that. Home equity loans are increasingly popular these days, and many people with large amounts of equity in their homes are borrowing against it and using the money for home improvements, dream vacations or other luxury items. Others are simply cashing out and moving elsewhere. While prices on both coasts are rising at a breathtaking rate, price increases in most of the country are still more modest. A homeowner in California who bought a home five years ago for $200,000 may have a home worth $500,000 today. If that homeowner were to sell that home and move to Texas, or Iowa or even parts of Florida, he or she could buy a comparable or even larger home, pay cash, and probably keep a healthy profit to invest. For most Americans, the equity in their home is their single largest asset. Examining that equity to see if it can be used more wisely would be a sound move, particularly as real estate experts warn of a housing "bubble" that may soon reduce prices to more realistic levels. Should this "correction" in the market take place, homeowner equity could be seriously reduced. Obviously, selling a home and moving just to pocket the equity is not something that suits everyone. While it may make sense from a financial standpoint, it will mean finding a new employer, finding a new home, finding new friends and moving children to new schools and friends. Anyone considering such a move would be well advised to carefully consider all of the ramifications of simply picking up and moving. On the other hand, the opportunity to extract several hundred thousand dollars in cash from a home is a rare one, and investing it wisely could go a long way towards financing a better lifestyle or a more comfortable retirement. Homeowners should be aware that there might be capital gains taxes to be paid on the sale of a home. Those considering selling their home to extract their equity would probably benefit from a consultation with a financial advisor. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.
MORE RESOURCES:
Google News |
 |
|
|
RELATED ARTICLES
High Risk Home Mortgage Lenders Online Online high risk home mortgage lenders specialize in offering loans to people with adverse credit due to bankruptcy or other financial problems. By analyzing online quotes, you can find a reasonable mortgage loan even with poor credit. FHA Mortgage: When Your Downpayment is a Gift There has been so much fraud discovered in the FHA program allowing gift funds for downpayment that Lenders and borrowers are required to absolutely document every step of the gift transaction to prove it was legitimate.Here's how it works: FHA allows the required downpayment to be a gift from someone who would logically be concerned about housing for the borrower. Reverse Mortgages - a Reversal of the Mortgage Process Mortgages have assumed a number of characters from the time of their inception. The traditional mortgages used to be of the repayment type. Know Your Mortgage Options While trying to find the lowest rates, many homeowners fail to examine the type of mortgage, and which type of mortgage is best suited to their needs. Whether you are buying a new home or refinancing, it is important to understand the different mortgage types, and evaluate which one best meets your needs. Making Sense of Mortgage Speak Applying for a home loan can be overwhelming. You will need to contend with mountains of papers, contracts, documents; and do lots of planning and coordination. Home Equity Loan - When Does Refinancing Make Sense? For the last two years, interest rates have been much lower than anytime during the last thirty years. This has resulted in an unprecedented boom in real estate sales, home refinancing and home equity lending, as borrowers try to take advantage of these rates for the long term. 5 Home Buying Essentials Purchasing a home involves certain important, even essential, steps that every buyer should take before closing on a purchase. Let's examine these "essentials" which, if properly implemented, can help you save valuable time and aggravation. Home Loans - Lenders Continue to Offer High-Risk Loans Home prices in the Untied States continue to soar, and the remarkable run of real estate as the "must have" investment continues. The median price of a new home, which only recently crossed the $200,000 barrier, is now $215,000. How to Find a Direct Homeowner Loan If you've been thinking about applying for a direct homeowner loan, you might want to take a little bit of time to make sure that you understand exactly how these loans work and to shop around for the best deal in a direct homeowner loan.What is a direct homeowner loan?So what is a direct homeowner loan? Basically, a direct homeowner loan is a loan that is made between a lender and a borrower directly (in other words, without a middle-man), using the equity in the borrower's home as collateral for the loan. The Top 5 Reasons to Buy a Home 1. Save on your income tax. Is It Time To Buy A House? At some point as you're writing out your rent check, you get to the point where you look at the amount and think to yourself - at this rate, I could BUY a house. If you're fed up with paying rent every month that's high enough to finance a mortgage, it may be time to take a serious look at what it would take for you to get a mortgage loan and buy a home of your own. How to Buy a Home Without a Down Payment Mortgage rates are rising and it's becoming more difficult for a prospective buyer to save up for the necessary down payment. Fortunately, there are ways around this hurdle. Buying a Home With Poor Credit Is Easier Than Ever Buying a home with poor credit is easier than ever with online mortgage brokers. You can easily find sub prime lenders, compare rates and terms, and complete the process on your schedule, not the banks. How to Find Cheap Home Improvement Loans If you have home improvements that you'd like to see done but don't have the money to do them, you might want to consider looking for cheap home improvement loans.These are loans that are designed with the homeowner in mind, and allow you to make the repairs and improvements that you want but that you otherwise couldn't afford. Refinancing and Car Finance - Is it worth it? Refinancing and Car Finance - Is it Worth It?No doubt you have heard of refinancing your mortgage. It has become all the rage, but now you can also refinance your car loan. A Qualified Mortgage Consultant Can Help Boost Credit Scores Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. Home Loans and Mortgages - Time to Consolidate Loans? Home equity loans and lines of credit are useful tools for homeowners. They allow the homeowner to borrow against the value of his or her home for all kinds of purposes - home improvement, debt consolidation, vacations, and more. Home Loans For People With Bad Credit - Tips To Getting Approved Online Buying a home with bad credit doesn't have to stop you from finding an affordable lender. By shopping online for a lender you can find the best lending rates for your situation. Tips On New York Mortgage Refinance Loan Many homeowners want to know if it worth taking a New York mortgage refinance. How do you know if New York mortgage refinancing makes sense in your case? Read on to understand when you should refinance and how to go about doing it. Bridging Loan Basics A Bridging Loan is a short-term loan used as a way to provide funding for the purchase of a new property while the borrower awaits the sale of an existing property. Unless all the stars are in perfect alignment, it's tricky to coordinate the sale of one property and the purchase of another property in such a way that the transactions occur simultaneously.
|
| home | site map |
| © 2007 |
