Your Equity Could Make a Move Possible

Your Equity Could Make a Move Possible

Many homeowners in Miami and surrounding areas like Edgewater, Doral, Coral Gables, and Coconut Grove are feeling stuck between a rock and a hard place right now. Today’s mortgage rates are higher than the ones they currently have, making it harder to consider selling and moving. Maybe you’re in the same boat.

But what if there was a way to offset these higher borrowing costs? There is, and the money you need likely already exists in your current home as equity.

What Is Equity?

Think of equity as a simple math equation. Freddie Mac explains:

“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”

Your equity grows as you pay down your loan over time and as home prices climb. Thanks to the rapid home price appreciation in recent years, you probably have more equity than you realize.

According to the latest data from the Census and ATTOM, over two-thirds of homeowners have either completely paid off their mortgages or have at least 50% equity. This means the majority of homeowners have a game-changing amount of equity right now.

How Your Equity Can Help Fuel Your Move

After you sell your house, that equity can help you move without worrying as much about today’s mortgage rates. As Danielle Hale, Chief Economist for, says:

“A consideration today's homeowners should review is what their home equity picture looks like. With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion. This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase.”

Here are a few ways you can use equity to buy your next home:

  • Be an all-cash buyer: If you’ve lived in your current home for a long time, you might have enough equity to buy your next home without taking out a loan. In this case, you won’t need to borrow money or worry about mortgage rates.

  • Make a larger down payment: Your equity could also be used toward your next down payment. It might be enough to let you put a larger amount down, reducing the amount you need to borrow at today’s rates.

The First Step: Determine How Much Equity You Have in Your Home

To find out how much equity you have, you’ll need two things:

  1. The current mortgage balance on your home
  2. The current value of your home

You can find the mortgage balance on your monthly mortgage statement. For an accurate assessment of your home's current value, contact me, Anthony Spitaleri, your trusted local real estate agent. I can provide you with a professional equity assessment report (PEAR) at no charge.

Once you’ve connected with me and we’ve run the numbers, you’re one step closer to making a move you may not have thought was realistic—all thanks to your equity.

Closing Thoughts

If you want to find out how much equity you have and talk more about how it can make your next move possible, let’s connect. As your trusted real estate agent in Miami, I’m here to help you navigate the process and make the most of your equity.

Work With Anthony

Not only does Anthony help people navigate the challenges of real estate transactions in today’s market, he also gets to assist them in achieving their goals and fulfilling their dreams.

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