47454, Paoli, IN

When considering home equity, it is important to understand the different types of equity. Home equity is the difference between the market value of a home and what a homeowner owes on their mortgage.

In Paoli, IN, as of September 2017, the median home value was $128,900. This means that homeowners had $128,900 worth of equity in their homes.

However, not all homeowners have equal levels of equity in their homes. The percentage of homeowners with zero or negative equity varies greatly by county in Indiana. In Paoli County, only 2% of homeowners have no or negative equity in their homes.

On the other hand, in Floyd County, over 30% of homeowners have no or negative equity in their homes. This likely has to do with the higher prices and lower incomes found in Floyd County compared to Paoli County.

The reason that home prices are so important is because they are one measure of how much money an individual can borrow against their home. When house prices are rising rapidly relative to a person’s ability to pay off debt (i.e., when there is too much “house money”), this can lead to dangerous financial situations for individuals and families.

In recent years there has been an increase in people borrowing against their home equity to purchase cars or take out mortgages for larger amounts than they could afford if they only had access to cash flow from their house (i.e., using “debt-to-income” ratios). It is important for individuals and families to be aware of these risks so that they can make informed decisions about how best use their available resources