Home Equity

Written By Minh Tong
Jan 5, 2023
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Home equity refers to the portion of a homeowner’s property that they own outright. It is calculated by subtracting the remaining balance on the mortgage from the property’s current market value. Home equity can increase over time as the homeowner pays down their mortgage and as the value of the property increases.

One way that homeowners can use their home equity is by taking out a home equity loan or home equity line of credit (HELOC). These types of loans allow homeowners to borrow against the equity in their home and use the funds for various purposes, such as home improvements, debt consolidation, or paying for education or medical expenses.

There are several factors that can impact a homeowner’s home equity, including the size of their mortgage, the length of the loan term, and the interest rate on the mortgage. Homeowners with larger mortgages or higher interest rates may have less home equity, as a larger portion of their payments go towards interest rather than paying down the principal balance of the loan. In addition, property values can fluctuate over time, which can affect a homeowner’s home equity. If the value of the property decreases, the homeowner’s equity may also decrease.

Another way that homeowners can build equity in their home is by making additional principal payments on their mortgage. By paying more than the required monthly payment, homeowners can reduce the balance of their mortgage faster, which can increase their home equity.

It is important for homeowners to be aware of their home equity, as it can be a useful financial tool. However, it is also important for homeowners to carefully consider any decisions to borrow against their home equity, as these loans typically have higher interest rates than traditional mortgages and the borrower’s home serves as collateral for the loan. If the borrower is unable to make the required payments, they may risk losing their home.

In summary, home equity refers to the portion of a homeowner’s property that they own outright and can be used to borrow against through a home equity loan or HELOC. Homeowners can build equity in their home through paying down their mortgage and by making additional principal payments, and property values can also impact a homeowner’s home equity. It is important for homeowners to be aware of their home equity, but also to carefully consider any decisions to borrow against it. If you’re having trouble with your finances, speak with an Americor professional today to get back on track.


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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

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