The Value Of Building Home Equity
By Raynor James, Fri Dec 9th
There are numerous advantages to owning a home. One of theserious advantages is the equity that is built over time. Asequity builds, you create a pool of money to access in tryingtimes.
Home Equity
Equity is simply the value of a property after all debts havebeen deducted. If your home appraises at $500,000 with a homeloan of $250,000, you have $250,000 in equity. Whether yourealize it or not,
this equity can get you through hard times orprovide you with a funding resource. Let's look at some examples.
Emergency
If you get through life without any family or financialemergencies, you are one lucky person. Unfortunately, mostpeople aren't so lucky. Home equity can provide a financialcushion when life gets hard. You can use it to pay medicalbills, legal fees and any other expenses that arise from yourparticular problem. You will be extremely thankful you purchaseda home if you ever run into this situation.
Education
If you've ever watched "The Simpsons," you may have seen theepisode where Bart and Homer go camping. Bart tells Homer ascary story, but you only see the end of it and Homer screamingin terror. The words Bart whispers are, "...and that's how muchit will cost to send Maggie [baby] to college." It is a veryfunny scene until you, a parent, actually investigate the costof college tuition. Trust me, nightmares will soon follow.
Home equity can put an end to college tuition nightmares. Youcan borrow against the equity to pay college expenses. As withan emergency situation, home ownership will give you the abilityto pay the bills.
Making the decision to buy a home can be stressful andfrightening. As time passes, you will be incredibly happy youmade the leap.
About the author:Raynor James is with http://www.fsboamerica.org - providing FSBOhomes For Sale By Owner. Visit our "sell my home" page athttp://www.fsboamerica.org/seller.cfm to list and sell your homefor free for one month. Visithttp://www.fsboamerica.org/buyer.cfm to see homes for sale byowner.
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