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What is a home's value?
Home value has a slightly different meaning if you ask a homeowner, property appraiser or tax assessor. However, in most cases, home value means the amount for which a house would likely sell, otherwise known as the Market Value. Mortgage lenders, as well as buyers and sellers, typically rely on professional property appraisers to calculate Market Value.
What is a home appraisal?
A home appraisal is an objective estimate by a professional property appraiser of how much your home is worth. To find the value, a property appraiser visits your home, takes a detailed inventory of the property and researches the local real estate market. The estimate is based on many factors, including recent sales of comparable homes; neighborhood characteristics; age,
When should I get a home appraisal?
A home appraisal is an official opinion by an independent third party. A lender will usually order a home appraisal when you apply for a mortgage to buy or refinance a home. The appraisal fee, which usually runs between $300 to $500, is included in the mortgage closing costs.
How does the home value impact what financial decisions I can make?
A home buyer who knows the current market value of a home can make smart decisions about how much to offer on a house. Conversely, a home seller who knows the current market value of the home can determine how much to price the home for sale. For a homeowner, equity is reflected in the market value. You subtract the home’s mortgage balance from its market value to calculate equity. You build equity as you make monthly payments and pay down your principal. Other factors, most notably home price appreciation, can speed up or slow down the equity-building process. With enough equity, you may be able to refinance into a loan at a lower interest rate or drop your private mortgage insurance (PMI). You might even be able to remodel your home or pay off higher cost credit card debt through a cash-out refinance.
What is home equity and how does it impact my financial security?
To keep it simple, home equity represents the portion of the house you have “paid off” and therefore you own that percentage. Equity increases slowly with each mortgage payment; however, it may grow faster if your current make value rises from home improvements or if home values rise in your area. To a homeowner, equity is an asset that can directly affect your financial future. More equity means more ways to achieve some short-term financial goals. You tap into home equity to make home improvements, consolidate higher cost debt, cover emergency expenses, or even pay college tuition. On the flip side, it is prudent not cash out or borrow against home equity just because you have it. Tapping equity can add years to your mortgage payoff and means less cushion if the home loses value. Be smart because, if you have trouble paying the loan for any reason, such as losing your job, the mortgage lender could foreclose on your house.
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What is a home's value? 

Home value has a slightly different meaning if you ask a homeowner, property appraiser or tax assessor. However, in most cases, home value means the amount for which a house would likely sell, otherwise known as the Market Value. Mortgage lendersas well as buyers and sellerstypically rely on professional property appraisers to calculate Market Value. 

What is a home appraisal? 

A home appraisal is an objective estimate by a professional property appraiser of how much your home is worth. To find the value, a property appraiser visits your home, takes a detailed inventory of the property and researches the local real estate market. The estimate is based on many factors, including recent sales of comparable homes; neighborhood characteristics; age, size and condition of the home. 

When should I get a home appraisal? 

A home appraisal is an official opinion by an independent third party. A lender will usually order a home appraisal when you apply for a mortgage to buy or refinance a home. The appraisal fee, which usually runs between $300 to $500, is included in the mortgage closing costs. 

How does the home value impact what financial decisions I can make? 

home buyer who knows the current market value of a home can make smart decisions about how much to offer on a house. Conversely, home seller who knows the current market value of the home can determine how much to price the home for sale. For a homeowner, equity is reflected in the market value. You subtract the home’s mortgage balance from its market value to calculate equity. You build equity as you make monthly payments and pay down your principal. Other factors, most notably home price appreciation, can speed up or slow down the equity-building process. With enough equity, you may be able to refinance into a loan at a lower interest rate or drop your private mortgage insurance (PMI). You might even be able to remodel your home or pay off higher cost credit card debt through a cash-out refinance. 

What is home equity and how does it impact my financial security? 

To keep it simple, home equity represents the portion of the house you have “paid off” and therefore you own that percentage. Equity increases slowly with each mortgage payment; however, it may grow faster if your current make value rises from home improvements or if home values rise in your area. To a homeowner, equity is aasset that can directly affect your financial future. More equity means more ways to achieve some short-term financial goals. You tap into home equity to make home improvements, consolidate higher cost debt, cover emergency expenses, or even pay college tuition. On the flip side, it is prudent not cash out or borrow against home equity just because you have it. Tapping equity can add years to your mortgage payoff and means less cushion if the home loses value. Be smart because, if you have trouble paying the loan for any reason, such as losing your job, the mortgage lender could foreclose on your house. 

Can I control or reduce the cost of homeownership? 

Home value can be affected by factors beyond your control, but you can still manage the ongoing costs of home ownership. These include: 

  • Utilities – Boost home energy efficiency to stop energy wasteMake your energy bills more affordable, for example switch to LED lightbulbs, seal windows to properly insulate your home, or replacold appliances with energy-efficient onesIf you are not sure where to start, ask your utility provider about a home energy audit. 

  • Insurance – Compare your current home policy from different local insurers to find the best combination of coverage, serviceand price. Most consumers purchase insurance solely on price, which is not wise for something you are required to pay for your entire life. Insurance is highly specialized and requires professional insight to get the best experience and price for the coverage you need. Choose an agent from a reputable insurer who is knowledgeable and willing to meet with you to go over all the details. One benefit of working with professional agents is they can tailor the policies to your needs rather than simply picking the standard coverage and offer cost saving tips. Lower your insurance premium through home improvement – a new roof, plumbing, water leak devices or security system. 

Please call or text 303 699-2800 to speak with our salaried based Risk Specialist for a no obligation coverage and/or home insurance cost assessment. 

Emai michaelgibbs@rocketprofessional.com or call 303 699-2800 for a courtesy mortgage and PMI removal assessment. 

Refinancing replaces your existing mortgage with a new loan. Some reasons for refinancing are related to home value, while others are not. Refinancing might be a good idea if you want to: 

Contact one of our Mortgage Specialist to learn how to take advantage of dropping mortgage insurance. Call 303 699-2800  

Pull cash out of your home – As you pay down the loan and your home gains value, equity increases. When your equity stake is large enough, you may be able to turn some of it into cash through a cash-out refinance. 

Unlike other assets, such as your car, a home often appreciates over time. In general, real estate appreciates because there is only so much space for new development. As time goes on, there is generally more demand for less land, driving up value. If demand drops, however, prices could go down too. 

  • Age and condition of the house and property 

  • How much the house sold for in the past 

  • Home improvement 

  • Nearby amenities 

  • Quality of the schools 

  • Quality of the neighborhood 

  • Square footage 

  • Tax assessment 

  • Market conditions, such as the number of homes available and strength of the economy

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