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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.