It's no secret that home and property values are up across the country. Nearly 80 percent of the housing market in the U.S. saw double-digit gains in their value.
It's clear that it's a great time to be a homeowner, but what about those who are renting and considering buying a home? David Hall from Hall Financial explains why it's a great idea to invest into buying a home, and what current homeowners can do with their newly earned home equity.
With the significant rise in home values, it's a tremendous time to own a home because your investment can only grow. Within two years, home values have gained around 15 percent each year.
For example, if you purchased a $200,000 home, after these past two years, your home is now worth $265,000.
That's $65k gained in home equity, and that money can be tapped into with a cashout refinance.
This equity is something for people to consider when deciding whether to rent or buy not only for cost reasons but for investment reasons as well.
The average cost to rent in the Grand Rapids area is about $1,500 a month, which comes to $18,000 a year. An average mortgage payment for a $200k home is $1,100 a month, or about $13,000 a year.
So not only is the mortgage payment cheaper, but when you rent, you do not build home equity. When paying mortgage payments, it's an investment going towards paying down your home loan, which allows you to gain even more home equity.
Hall Financial can get you pre-approved for a loan or refinance your home the same day you apply and connect you with a top-rated realtor in the area. They have an exclusive realtor network allowing the home-buying process to be easy for first-time buyers.
For a limited time only, Hall Financial is paying for your appraisal, saving you up to $750 on closing costs.
To learn more about the services Hall Financial has to offer, visit callhallfirst.com or call 866-CALL-HALL.
Sponsored by Hall Financial.