Did you know that knowing what your home is worth can help your 2018 financial goals?
2018 has begun and one of the most popular new years’ resolutions tends to involve your finances. If you currently own a home, knowing what your home is worth may make a big impact on your 2018 financial goals.
According to Zillow, United States home values have gone up six-and-a-half percent over the past year and Zillow predicts they will rise three percent within the next year. When housing values increase this equates to potentially more equity available in your home. Equity is the difference between your mortgage balance and the market value of your property.
Having equity in your home opens many possibilities for you. Some of which include being able to sell your home without having to bring cash to the closing table. If you plan on staying in your home, more equity means that you may be able to finally do those renovations you have always wanted by securing a home equity line of credit or doing a cash out refinance.
If cutting the budget is one of your 2018 financing goals then having at least twenty percent equity in your home may mean you are able to cancel the PMI (private mortgage insurance) on your conventional loan adding valuable dollars back into your wallet. Although PMI can be cancelled on a conventional loan, you cannot cancel FHA mortgage insurance. The only way to eliminate your FHA mortgage insurance is to refinance into a different type of loan.
Determining the value of your home.
There are many factors that determine what your home may be worth. Websites such as Zillow, Trulia, and Realtor.com can provide you a general estimate of what homes are selling for in your area. If you are looking for a more personalized estimate of what your home is worth consider contacting an experienced realtor in your area or paying for an appraisal.
The information voiced in this material is for general information and is not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with Zillow.com, Realtor.com or Trulia.com.