What Is Home Equity Security?
Home equity security is essentially based on the principle that more equity means more security. Find out how to use home equity security to help with life changes with help from a financial adviser in this free video on home equity and personal finance.
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Hi, this is Matt McKillen with Innovative Financial Group. The question posed to me today is what is home equity security? It's actually a question I've not been asked before. I believe that home equity security is basically the more equity you have in your home, the more secure you are for financial crisis down the road, or if let's say you see a larger home you may want to purchase down the road, when you have home equity, home equity is the amount of the value of your house that's not encumbered by a mortgage. So for example you may be living in a hundred thousand dollar house, only owe about fifty thousand dollars. You have about fifty thousand dollars in equity in that property which I consider to be security. If you sold that home and you turned around and purchased a new home, after you pay your mortgage off you're going to have fifty thousand dollars in down payment to work to maybe to move into a larger house if your family grows or if you have to transfer due to a job change, so I think the definition of home equity security is having that equity available for changes in your life down the road. Again my name is Matt McKillen, and I'm with Innovative Financial Group.