37618, Bluff City, TN

Home equity is the difference between the market value of a home and what a homeowner owes on their mortgage. In Bluff City, TN, the median home equity was $111,100 in 2016. This means that half of all homeowners in this zip code had more equity in their homes than what they owed on their mortgages. The average home value in this zip code was $151,200 in 2016. So while there are some homeowners who owe more on their mortgages than their homes are worth, on average most people in this zip code have more equity in their homes than what they owe on their mortgages.

The reason that home equity is important is because it gives homeowners a cushion against unexpected expenses or declines in the value of their homes. If something happened to reduce the market value of my home by 50%, I would still be able to live comfortably since I would only owe 50% of my original mortgage balance rather than 100%. This means that if there were an economic downturn or another problem with the economy where fewer people were buying houses, my chances of being forced out of my house would be much lower since I still have some equity left over even after taking into account my mortgage payments and other expenses related to owning a house.

Another reason why home values are important is because they are one factor used to determine whether someone can afford to buy a house or not. If you have less money available to you for down payment and other costs associated with buying a house, then your chances of being able to buy a house will be lower since houses typically cost more money if you don’t have enough money saved up already. For example, if you make $50,000 per year and want to buy a $150,000 house without putting any extra money down (other than your regular monthly bills), then your chances of being able to do so will be lower if your home equity is only $25,000 rather than $75,000.