Back to Blog
Right out of high school for most Americans is brought on by no more high school, no more pesky teachers, no more rules, freedom, college and becoming an adult. And with becoming a legal adult above the age of 18 begins the lovely process of you being bombarded with letters and mailers by credit card companies and student loan companies. This is a great process for the creditors because they can sucker you in by getting your information and then sinking you into thousands of dollars into debt. Favor Home Solutions
But as an adult, you need an established credit score before you can buy a car or buy a house. So how do you balance having a credit score by not going into credit card debt? Here's your answer!
If you're telling yourself, "I need to sell my house fast so I can buy another one," this is the place to be! So here's how you can do it!
Good debt versus bad debt. What is it? Let's start with bad debt. Bad debt is debt that is avoidable and is not the best thing for you to venture into. An example would be credit card debt because you don't need to be in credit card debt, it's easily avoidable.
An example of good debt is a house because you're not expected to be able to pay for a $150,000 house upfront in cash money. You take out a mortgage and that's considered good debt because you're investing into real estate. A car loan is kind of on the border because some people think that they are a good debt and a bad debt. Personally, don't get a car loan if it's avoidable by waiting a year or so.
If you have questions about any of this, contact my blog! I also recommend Favor Home Solutions to help with all of this because they can sell your house fast for cash even if you have a bad or low credit score!
Back to Blog
When you buy a house you typically have to put a down payment on the house because the bank won't lend you every single penny. However by you putting money down upfront on a new house for you and your family, you are beginning the process of gaining equity and starting your financial future for your family. So you might be asking yourself, what in the world is equity? Is this something I have or I get when I sell my house fast?
Well, here's your answer. Equity is the money that you invested have in your house and the potential returns on your family's home. You can have large or small amounts of equity. But with equity size matters, bigger is better. The more equity you have in your house the better chance you have of being able to say, "where can I sell my house fast for cash?"
The more equity you have in your home the more stable your financial future for your family will be. You can add equity by doing upgrades in your home yourself, that is more commonly known as sweat equity. Another fantastic way to look and see how much equity in your home you can have is by looking at what houses are selling for in your area. Let's say for example, you paid $100,000 for your home. You begin to look at the market and see that you could sell your house for $150,000. Right there, you have $50,000 in equity. So in short, The way to figure out equity is taking how much you can sell your house for subtracted by the total amount or total number you have invested in your home.
If you have any questions about figuring out how to calculate your homes equity, then I would recommend getting in touch with Favor Home Solutions because they are home equity experts. They can help you with all of your questions and they can even help you cash out and get the equity of your house in cash.