Equity represents the portion of your home that you truly own. As you make mortgage payments and the value of your home increases, your equity grows, which can be a significant source of wealth over time. However, a home is also an illiquid asset, as the only way to realize your gain is to sell, and selling a home typically involves a lengthy process that can take weeks or even months.
When people need to tap into the equity in their home, most consider a cash-out refinance, in which a homeowner refinances their mortgage for an amount greater than the existing loan balance, taking the excess cash in the form of a lump sum. Alternatively, they may explore a home equity line of credit, a type of revolving credit that allows homeowners to borrow against the equity they have in their homes. It functions as a line of credit secured by the value of the home.
The Gwinnett Daily Post is a daily newspaper published in Gwinnett County, Georgia, and serves as the county's legal organ. The newspaper is owned by Times-Journal Inc. and prints Wednesday and Sunday each week.
