Homeowner Wealth Increases Through Growing Equity This Year
By Shayne Stone, "Your Rock Solid Choice Realtor" RETIRED
(HomeSmart)
Building financial wealth and stability remains one of the top reasons Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the Urban Institute, Home Ownership is Affordable Housing, author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments:The principal portion that reduces the loan balance builds the homeowners equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.But home equity the difference between the value of your home and what you currently owe isn't just built through your monthly principal payments. Home price appreciation p...
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