In Medina County, homeownership is a solid investment. With an increase in home value comes an increase in available equity. Equity is a real asset when looking to invest, build savings or pay down debt. A simple way to calculate equity is to subtract the amount you owe on your home from its current estimated value.
Over the past five years, Medina home values have risen steadily. Homes that sold in 2019 or 2020 for the mid-$200,000s are now valued in the low-to-mid $300,000 range. That appreciation and increased value results in real equity for homeowners, often without doing anything more than making mortgage payments and maintaining the property.
At the same time, mortgage rates have changed dramatically. We experienced historically low rates around 3% during 2020 and 2021. In recent years, rates have settled higher, typically in the 6 to 7% range, and in some cases 8 to 9%. While that shift has made buyers more cautious, it doesn’t negate the long-term financial opportunity that homeownership provides.
For some homeowners, a shift in rates provides strategic options.
For example, a homeowner who has built up $80,000 in equity over the last several years but is carrying $40,000 in credit card debt at 20% interest, could pay off that high-interest debt, lower their overall monthly payments and potentially save thousands of dollars in interest each year by using a cash-out refinance. It’s not about “starting over,” it’s about restructuring debt in a smarter way.
The key is having a plan. A mortgage can be used thoughtfully, to support bigger goals. Securing a lower payment can free up hundreds and thousands of dollars for investing, building savings, or simply creating more breathing room in your monthly budget.
I’m here to help you put a smart plan in place and move confidently toward your goals. Contact me at angelanicholson@cf.bank to get started.