The study also revealed that only 37% of Americans believe that they have “significant equity”
(greater than 20%), when in actuality, 73% do!
This means that 37% of Americans with a mortgage
fail to realize the opportune situation they are in.
With a sizable equity position, many homeowners
could easily move into a housing situation that
better meets their current needs (moving to a
larger home or downsizing).
Fannie Mae spoke out on this issue in their report:
“Homeowners who underestimate their homes’
values not only underestimate their home equity,
they also likely underestimate: 1) how large a
down payment they could make with their home
equity, 2) their chances of qualifying for
mortgages, and, therefore, 3) their opportunities
for selling their current homes and for buying
different homes.”
Bottom Line
If you are one of the many Americans who are unsure of how much equity you have built in your
home, don’t let that be the reason you fail to move on to your dream home in 2016!
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