For most of us, our home is our biggest investment. The difference between what we owe on a home (mortgages, home equity loans, etc) and its value on the market is known as equity. For years, we just assumed that our home's value would increase as time went by. Therefore, the equity would grow like savings in a bank account, but at a much higher rate. Unfortunately, the market over the past couple of years has made it necessary for us to change the way we think. Home prices in many areas of the country have declined, and that means the equity many of us have in our homes has declined as well. In many cases, it has been eliminated all together.
As a Realtor, I always encouraged people to keeep track of their home's equity like they would track any other investment. The last thing anyone wants is to be surprised when they go to sell their home. You need to know the value, and the equity, of your home whether you are starting to think about your next purchase or plan for retirement.
If you are located in the Bedminster, NJ area and are interested in obtaining a free market analysis for your home, please contact me. I can help you see how your home equity is doing.