Home Ownership Creates Jobs

While America continues to feel the effects of a historic recession and staggering unemployment; housing can help the nation acheive a genuine recovery. The National Association of Realtors estimates that one job is generated for every two home sales. This means that for every 5 million homes sold, 2.5 million private sector jobs are created. NAR also estimates that each home sale at a median price pumps a total of 60,000 dollars into the economy over time! Jobs enable people to achieve the American dream of home ownership. Every time a home is built, bought , or sold, jobs are created.

Home Equity

Home Equity is the amount of money you have already paid against the value of your home. A simple form for determining your home equity is to subtract the amount of the Mortgage Balance from the current Fair Market Value of your home. In other words your equity increases as your mortgage balance decreases. For example: If your home has been appraised for $180,000 and you owe $100,000 on your mortgage, your equity is $80,000. Unless of course if you have a lein or second mortgage on your home, than you also need to subtract that amount from the appraised value to determine your home equity accurately. Many people put their established equity to work for them. They borrow against it and use the money for many things such as, home improvements, college tuitions, or purchasing additional properties.

Mortgage Interest Rates

I want to share with you a little bit of information I've learned on Mortgage Interest Rates. The interest rate you pay on a mortgage is the single biggest factor in your monthly payments. The higher the mortgage rate the more you will pay over the life of the home loan. There are two basic types of mortgage interest rates Fixed and Variable. For a fixed rate loan the mortgage interest rate is set when the loan is originated, and is fixed for the life of the loan. For variable rate loans, also called adjustable rate mortgages{ARM}, the interest rate can change over time. Often an adjustable rate loan can be obtained at a lower interest rate; however, you are accepting the risk that interest rates may go up in the future. A fixed rate loan may have a higher initial cost, but it protects you from future changes in mortgage rates.

Pricing A Home to Sell

The most Important factor to consider when selling a house is the homes price tag: how much your house is worth. You don't want to overprice the house, because you will lose the freshness of the home's appeal after the first few weeks of showing it. Also do not worry about pricing the home to low, for homes priced below Market Value- the price of which a bonafide seller is willing to sell, and an able and willing buyer is able to buy  will often recieve multiple offers which then drives the price up to market. Pricing is all about supply and demand.