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So Much Equity!!! (Episode 62) S5 E2
Manage episode 321580624 series 2936153
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You can watch this video on YouTube.com: https://youtu.be/77l_Juz8G3E
How much equity's in your house? Well, if you haven't refi-ed and you've owned for more than two years...probably more than $80,000!
0:00 Introduction
1:32 – The Homeowner Investor. Utah numbers Since 2019: median home was $320,000. Today that home is worth $444,000. Tap your equity in one of two ways: sell your house or home-equity loan. What if we DON’T sell? Go full homeowner investor. Equity is the difference between current value and what you owe. If you’ve owned your home longer than 2 years and you haven’t refinanced, you have at least $80,000 equity!
4:08 – Example House. $161,000 equity.
5:15 – HELOC. Home equity line of credit. Very common is 80% Loan to Value (LTV). Here’s the formula: (Current Value * LTV) - Mortgage Balance. In our example: $444,000 * .80 = $355,200. This is the loanable amount. Now subtract the mortgage balance. $355,200 - $283,000 = $72,200. This is the HELOC loan ceiling — i.e. how much equity you could touch.
6:20 – Invest it! My first property cost my $320,000, why would I buy a townhome for $485,000? You can make money buying a way more expensive property? Yes. What if I don’t move out (which would allow me to owner occupy with 5% down payment)? You can get an investment loan (20% down, and higher interest rate). And for putting down 4 times as much, you’re payment will only be about $127 less expensive per month. Use your dollars wisely, and move.
7:55 – Strategy. Make a plan, and have the tenacity to stick to it. Use ratios (math!!) to make you money. You could make 3% on $400,000 or 3% on $800,000. Which one sounds better? This can finance your retirement. “House Hacking” is a strategy for owner occupying (5% down payment). Live there for a couple years, then HELOC, rent it out, and get another property. Build your portfolio.
11:35 – Agents. Investment strategies call for a deal every year or two, instead of every 5 – 7 years. Build your team, and work on your strategy.
13:05 – What’d we learn today?
14:56 – Bloopers.
* No equity was harmed in the making of this video.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.
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