There are numerous advantages to owning a home. One of the serious advantages
is the equity that is built over time. As equity builds, you create a pool
of money to access in trying times.
Home Equity
Equity is simply the value of a property after all debts have been deducted.
If your home appraises at $500,000 with a home loan of $250,000, you have
$250,000 in equity. Whether you realize it or not, this equity can get you
through hard times or provide you with a funding resource. Let’s look
at some examples.
Emergency
If you get through life without any family or financial emergencies, you
are one lucky person. Unfortunately, most people aren’t so lucky. Home
equity can provide a financial cushion when life gets hard. You can use it
to pay medical bills, legal fees and any other expenses that arise from your
particular problem. You will be extremely thankful you purchased a home if
you ever run into this situation.
Education
If you’ve ever watched “The Simpsons,” you may have seen the
episode where Bart and Homer go camping. Bart tells Homer a scary story,
but you only see the end of it and Homer screaming in terror. The words Bart
whispers are, “…and that’s how much it will cost to send Maggie
[baby] to college.” It is a very funny scene until you, a parent, actually
investigate the cost of college tuition. Trust me, nightmares will soon
follow.
Home equity can put an end to college tuition nightmares. You can borrow
against the equity to pay college expenses. As with an emergency situation,
home ownership will give you the ability to pay the bills.
Making the decision to buy a home can be stressful and frightening. As time
passes, you will be incredibly happy you made the leap.
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by owner, "FSBO", properties. Are you thinking, "Should I sell my home?"
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