Equity can be a confusing part of homeownership. Equity Prime Mortgage would like you to understand what it means to have negative equity and provide you with tips to help you build equity through future blog posts.
Home equity is the difference between a home’s fair market value and the outstanding balance of all liens on the property – how much is owed.
Negative equity happens when the value of an asset falls below the outstanding balance on the loan used to purchase the asset. This often occurs when the economy starts to slow or home prices start to drop.
Unfortunately, a slow economy and dropping home prices are out of your control. There are, however, several things you can do to help rebuild your equity. In future blogs, we will provide you with tips to help build your equity.
If you have any questions or your financial situation has changed, please contact us at 609-597-0007 or email@example.com to further discuss how owning a home may be more beneficial for you.