Houtan HormozianExpert on Real Estate, Finance and PropTech

Myths Shattered, facts revealed. Unveiling the truth.

23 May 2024 · 1 min

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In this brief video, the speaker debunks the common myth that homeowners with an underwater mortgage cannot increase their home equity. While acknowledging that building equity is more challenging when the loan balance exceeds the property's market value, the speaker explains that it is still possible. By making extra mortgage payments, refinancing to a lower interest rate, or undertaking strategic home improvements, homeowners can gradually increase their equity and eventually achieve positive equity.

Chapters

Increasing Home Equity: Myth vs. Facts. Myth: You can't increase home equity if your home is underwater— worth less than you owe on the mortgage. Fact: While it's more challenging to build equity when you owe more on your mortgage than your home is worth, it's not impossible. Making extra mortgage payments, refinancing to a lower interest rate, or making strategic home improvements can help you gradually increase your equity and eventually reach a point where you have positive equity in your home.