Leveraging Your Home Equity in Los Angeles and Beverly Hills: Making Your Next Move a Reality

Leveraging Your Home Equity in Los Angeles and Beverly Hills: Making Your Next Move a Reality | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

In the dynamic real estate markets of Los Angeles and Beverly Hills, many homeowners are feeling the pinch of today’s higher mortgage rates, making the idea of selling and relocating less appealing than it might have been under lower rates. However, the substantial equity that homeowners have accrued due to the rapid appreciation of home prices in these areas over recent years could be the key to facilitating these moves without financial strain.

What is Home Equity?

Home equity is essentially the value that you own outright in your home. It's calculated by subtracting the amount you owe on your mortgage from the current market value of your property. As property values in Los Angeles and Beverly Hills have skyrocketed, so too has the equity for long-term homeowners. Recent data from sources like the Census and ATTOM indicate that more than two-thirds of homeowners have either completely paid off their mortgage or possess at least 50% equity.

How Can Equity Help You Move?

With significant equity, Los Angeles and Beverly Hills homeowners might find they have more flexibility to manage higher mortgage rates effectively. For instance:

• All-Cash Purchase: If your home has appreciated significantly, as many in the Beverly Hills and Los Angeles areas have, you might have enough equity to purchase your next home outright, eliminating the need to deal with current mortgage rates.
• Larger Down Payment: Alternatively, you can use the equity from the sale of your current home to make a substantial down payment on your next property, reducing the amount you need to borrow and potentially securing better borrowing terms despite higher rates.

Assessing Your Home's Equity

To start, you’ll need to know your current mortgage balance and the value of your home. While you can find your mortgage balance on your latest statement, estimating the current market value might require professional help. Here in Los Angeles and Beverly Hills, where the market can be particularly volatile and segmented, obtaining a professional equity assessment report (PEAR) from a local real estate expert can provide an accurate and cost-effective alternative to an appraisal.

Why Now Is a Good Time to Act

Despite current market challenges, now is an opportune time to leverage your equity to relocate or upgrade. With home values in high-demand areas like Los Angeles and Beverly Hills continuing to hold strong, tapping into your home equity could unlock new possibilities for your living situation.

Bottom Line

If you're considering a move and want to understand how your home equity can help make this possible, it’s time to connect. Whether you're eyeing another stunning property in Beverly Hills or looking to explore a new area in greater Los Angeles, your equity might just pave the way to your next dream home. Let’s explore your options together and plan a move that maximizes your financial outcomes in today's real estate landscape.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value