Equity
Posted by Mark Linton
You Work Hard to Build It, Why Give It Away!
Equity is the value of your home minus what you owe on your mortgage. For example, If Joe's home is worth $200,000 and Joe still owes $170,000, then Joe's Equity is $30,000. All homeowners in Atlanta Georgia and surrounding counties should be aware of the Rule of 50/20. For most mortgages, after making payments for 15 years on a 30 Year mortgage you will have only paid off around 20% of your principle. In other words, after paying for 50% of the term of your 30 Year mortgage, you will have only paid off 20% of what you owe on your home. That's the Rule of 50/20. In the early years your mortgage payments are front-loaded with HUGE interest payments. Only a small amount each month goes towards your principle. Therefore it takes a long time to build decent Equity in your home. Most homeowners in the Greater Atlanta Georgia Metro Area only stay in a home for around 7 years, that's very little time to build Equity. Remember, agent/broker commissions come out of your Equity. Using the above example, if Joe's Equity is $30,000 and he pays 7% commissions ($14,000) to an agent/broker, Joe will lose close to 50% of his Equity just to have someone sell his house for him. If Joe sold his home on http://www.fsboatl.com he saves this expense and protects his Equity. For the latest updates visit: www.fsboatl.com No Commissions - Just Results ™
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