You May Already Have Your Next Home Down Payment
A Fannie Mae survey last year found that as many as 15 million homeowners underestimate the equity in their current homes despite rising home values, and don’t realize that they could be able to buy a home.
So many potential borrowers have a “negative perception gap” of their home values that they say it’s actually suppressing the home buying and mortgage market activity across the US!
At the time, 37 percent of homeowners believed that they had more than 20 percent home equity, but 69 percent actually had much more significant amounts than they thought.
This “negative perception gap” or “appreciation gap” means people are reluctant to consider buying a home, in part because they underestimate how large a down payment they can make with their home equity, their chances of qualifying for mortgages, and their opportunities for selling their current homes to buy different ones. But accurate equity estimates also require accurate liability values, and homeowners also appear not to be totally certain what their mortgage liability is at any point in time.
What do you think? Do you want to move, but have you been of the belief that you cannot manage enough of a down payment to make it happen?
Would you like a free look at what your equity might really be at this time? You can get an idea what sales are like in your neighborhood from my online search page, then for a more detailed picture, contact me and let’s find out what you have!
Please visit my website jimatthetop.com for a wealth of information and news about buying and selling real estate, Houston area communities, financing and more.
JIM AT THE TOPJim Pedicord RE / MAX Top Realty
713-773-3700 x 2537 Office
2911 S. Sam Houston Pkwy. E. Houston, TX 77047