Home Equity: Current market value minus liens.
Liens: Is a claim on a residential property for the homeowner's unpaid bills like a mortgage. A lien is a legal document filed through the office of the recorder or court clerk in your county of residence.
As Mr Johnson explains: Your home equity is an asset that indicates how much of your home has been paid off and is fully owned by you. If you purchased your home outright with cash, lucky you; your equity is simply the total amount of your home’s appraised value. However, most homebuyers have to finance real estate purchases with a mortgage.
In this case, your home equity is simply the market value of your home minus the current balance of your mortgage. Your first stake of equity in your home is your down payment, and your equity increases as you pay down your mortgage loan and/or as your home’s value appreciates.
So you can use that home equity by getting a second mortgage, HELOC or buying a new home.
Want to know the value of your home?
Ask Rick Johnson or watch his short video.
Mortgage Broker/Real Estate Agent/Solution Expert
Village Financial Group, Inc.
916-367-3738
NMLS#360614 CaBRE#01711076
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Sergio Musetti Notary Public, Apostille, Spanish Translation, Servicio de Apostilla en California
