Equity Line of Credit Articles
Market fluctuations, demographic location, and owner upkeep all play an essential role in the value of your home. Your equity is the difference of what you owe on your mortgage(s) and the current market value of your property. In many cases building home equity can take some considerable time to build up any substantial amount. Of course when the market turns on a flat or downward spiral you can lose a substantial amount of equity if you are not prepared for it. The average appreciation is 7% per year for a national average and in some cases we have seen up to 20% or more. Although these are rare occurrences they make the real estate market the most lucrative marketplace in the country. One of the most common misconceptions about real estate is leverage. When you have exceeded the 80% Loan to Value limit on your mortgage you are eating away at your own personal wealth. Your interest rates are higher and your overall cash flow is decreased substantially.
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