Equity cushions flat for newest buyers
Billowing appreciation rates have been the hot news in home real estate for much of the past three years. But now, with many of the most effervescent local markets in a cool-down phase, the focus is turning to something much more fundamental: homeowners’ equity stakes.
How big is your home equity cushion? How much more is your home worth compared with the debts you’ve loaded on it – primarily your first and second mortgages and credit lines? Do you have a 20 percent equity stake? Less than 10 percent?