If you own a house, you might be unsure whether or not it's the right time to sell. It could be because you're worried about getting a higher mortgage rate for your next home. But hey, if that's your main concern, let me tell you that understanding your equity could really ease your mind and help you feel more confident about making a move.

What Equity Is and How It Works

So, you know how equity is basically the value of your home minus what you owe on your loan? Well, get this: Lately, that equity has been growing way quicker than you might think. It's like your home is becoming more valuable, and you owe less on it. Pretty cool, huh?

Over the past few years, the price of homes went up a lot, which means you made a lot more money from owning one. Now, things are starting to go back to normal in the housing market, but there still aren't enough homes for sale compared to the number of people who want to buy. Because of this, the prices of homes are going up again. Rob Barber, the CEO of ATTOM, a company that provides data about properties, explains it like this:

““Equity levels were high even during the recent downturn, and now they are going back up and better than ever.””

— Rob Barber, CEO of ATTOM

How Equity Benefits You in Today’s Market

With how expensive homes are these days, having equity can really make a difference when it comes time to move. Let me explain why. According to ATTOM and the Census, nearly 70% of homeowners have either paid off their mortgages completely or have at least half the value of their home in equity. Take a look at the chart below for more details.

That means roughly 70% have a tremendous amount of equity right now.

Once you sell your house, you can actually use the money you make from the sale to help with your next home purchase. It could be a portion, if not all, of what you'll need for the down payment on your new house. In fact, it might even be enough to allow you to put down a much larger amount, so you won't have to borrow as much. And hey, if you've been living in your current house for a while, chances are you've built up quite a bit of equity. In that case, you could even pay for your next house in cash, without having to worry about borrowing or dealing with today's mortgage rates.

How To Find Out How Much Equity You Have

If you want to find out how much you've got with your property, the easiest way is to get in touch with a reliable real estate agent and ask them for a Professional Equity Assessment Report (PEAR). They'll give you all the details you need to know about your home's worth.

Bottom Line

Thinking about moving? The money you've built up in your home can make a real difference. Let's talk and find out just how much equity you've got and how it can help you buy your next place.