Invester Education: Your Home As Equity

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By: WallStreetE
Subscribers: 2
Updated: 02-Apr-09
Videos: 74

English
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Views: 48
Added: 05-May-08

For most of us, our HOME is our biggest investment. And the investment begins with the down payment you make. How much determines what percentage of the property you actually own. That’s your equity. The greater your down payment, the greater your equity. As you pay off the principal on your mortgage, your equity goes up. When your mortgage is paid off, you’ve got 100% equity. As an added bonus, if your home appraises higher than the day you bought it, you have MORE equity. On the downside, if your home reappraises lower, you lose equity. It’s almost a guarantee that a home will rise in value after several years. But, this is where I tell you the not-so-great part: Even if you take good care of your property, things happen: a sluggish economy, high interest rates, changes… What if a superhighway or airport becomes your new neighbor? That’s why you always hear: Location, Location, Location.