05/30/2015
Where Did My Equity Go?
Most homeowners lost equity due to changing market conditions in the past few years. Fortunately, the lost equity is coming back slowly in most areas and housing demand is increasing. We have a way for you to become less dependent on the market when it comes to equity in your home. First, let’s look at the 4 main types of equity. You have control over the first 3 types.
4 MAIN TYPES OF EQUITY
1. Down payment equity – amount you paid down at time of sale
2. Principal reduction equity -- the equity required by FHA to be
free of MIP premiums
3. Improvement equity -- property value increases from
improvements to property
4. Appreciation equity -- equity gained from property value
increases due to inflation
Did you know that by enrolling in the Preferred Biweekly℠ you could have over $73,356 in guaranteed loan equity (principal reduction equity) in just 10 years? This is over $21,000 more than you will have making your payments the old-fashioned way. That’s more than enough for a down payment on your dream home if you would like to move up, or it will help you get out from under being upside down in your loan more quickly.
*This example is based on $300,000 loan , 5.5%, 30 years, $250 month escrow & mortgage ins. premium (PMI or MIP).
Adding additional to the Preferred Biweekly payments will accelerate your principal reduction equity even faster.
Contact us with your mortgage statement in hand for a comprehensive mortgage savings analysis including your principal reduction equity and total estimated equity in 10 years. We can calculate your new equity picture and show you a brighter future. Soon the past will be just a distant memory and we can help you plan for the future; moving from market dependency to being in control of your own equity (destiny).