Not Enough Equity

  With the recent changes in the housing market, it is becoming more common for homeowners to have less equity than they would like. This can be a problem if you are trying to sell your home because you will not get as much money back from the sale you hoped for. 

  In the same way, buying a home is often the single most expensive purchase that people make in their lives. When you buy a home, you need to have enough money for a down payment and to be able to afford mortgage payments every month. While some people are lucky enough to get help from family members with these costs, others will need to take out a loan or use other funding sources.

sell my house fast Washington
sell my house fast Washington
sell my house fast Washington

What Does It Mean Not Having Enough Equity

    Have you ever thought about the connection between your credit score and how much equity you have in a home? If not, now is the time. To start with, what is the meaning of equity? Equity is your home’s value minus the total of all debts and liens against it. The amount of money you owe to lenders for your loan or line of credit (or even cash advances) against this property is called “mortgage debt.” 

    In other words, if you owe $200,000 on your mortgage, but your house is worth $500,000, then the equity in your house would be $300,000. Sounds great, right? Not necessarily! The problem with not having enough equity in your home comes when interest rates rise, or housing prices start to fall (or both). If this happens, homeowners may find themselves “underwater,” meaning they owe more than their homes are worth.

How Not Having Enough Equity Can Affect Your Credit Score

    When you don’t have enough equity, it can affect your credit score. This is because the formula for calculating a credit score includes factors like how much money you owe on your mortgage and if you own the property outright, as we mentioned. If the amount of money owed on the house exceeds 50% of its value, it can negatively impact your credit score.

    If you’re not careful, your lack of equity can affect more than just your credit score. The lack of equity in America is a huge problem. One out of four Americans don’t have enough equity to cover an emergency expense costing $400, and the number goes up from there. Equity can be measured by liquid assets or net worth. Likewise, the lack of equity can also cause issues such as:

  • Lack of control over the property and repairs needed on the home.
  • Inability to get a loan for other things like cars or education.
  • Difficulty getting approved for mortgages in the future.

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The Solution You Need: Sell Your House Even With Not Enough Equity

      At I Will Buy, we have the solution you’re looking for. We can buy your house and make you an all-cash fair offer even if you don’t have enough equity. In the same way, we can close on your schedule, and you won’t have to worry about making any kind of repairs, replacements, or renovations to the house. You’ll save time and money while receiving instant cash for the property. Contact us today by calling us at or filling out our form.

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