Your home equity is a major investment : Rooftop Views

Rooftop Views

Your home equity is a major investment

We've said it before and we'll say it again - the equity in your home is your biggest asset and your best savings account.

A recent survey by Wells Fargo reports that most Americans believe this to be true. In this survey, 72% indicated that home equity is their most important investment - more than stocks, more than bonds, more than retirement funds. 24% of those surveyed said that one of the best benefits of homeownership is investment.

This same survey indicated that most homeowners were pleased with their purchases and, despite the recent downturn in pricing, felt they had made a good investment. Most felt that the markets would stabilize without the steep price discounts of a couple of decades ago.

Homeowners who have adjustable rate mortgages (ARMs) are very concerned about the increase in mortgage payments they will soon face. 79% of those with ARMs indicated they were concerned about interest rate jumps and over half indicated they would refinance to avoid the rate adjustment. The best advise is, if you have an ARM, stay on top of when the adjustments will start and how much they will jump. Have a plan in place on how to handle the increased mortgage payment.