Buy Without Your Bank

Home Equity, Does it Earn a Rate of Return? Is it a Prudent Investment?

Many home owners mistakenly believe that their home equity earns a good rate of return and is a prudent investment, because they confuse appreciation of the house for rate of return on the equity. What many fail to realize is that the appreciation of their home is not linked to home equity. This costs them thousands of dollars and locks them into a poor investment.