Money doesn't grow on trees. But your home? That's another story.
Blog article and images are provided from Vibrant Living
Do you realize your home equity can be one of your greatest financial resources?
It's true that as you pay down your mortgage, you build equity (the amount of your home you actually own). But as your home appreciates in value each year, it also helps you build equity without having to lift a finger. This equity becomes a valuable asset you can leverage to help you meet other financial needs.
The Power of Appreciation
Since 1991, home values have increased an average of 3.6% each year, according to the Federal Housing Finance Agency's (FHFA) House Price Index (HPI). Just in the past year, home prices went up an average of 6.9% across the country.
The chart below shows how home prices have generally risen over the past 27 years. As you can see, current home values have bounced back well over the peak of the housing bubble. That means, based on appreciation alone, there's a good chance that you may have equity to tap into.
