KXLY
Posted:
Updated:
February 10, 2021 7:31 AM
Home equity the current value of your home minus your mortgage balance matters because it helps you build wealth. When you have equity in your home, it’s a resource you can borrow against to improve your property or pay down other high-interest debts. However, it’s also volatile because home values are always changing, sometimes dramatically. To get a home equity loan, you’ll need a stable income and good credit.
Home equity is a large component of many people’s household wealth. That’s especially true for Black and Hispanic households, who “have seen outsized gains in housing wealth over the past decade,” according to the Federal Reserve.