Property values and equity can be overwhelming for a person who is unfamiliar with how they work. These are two concepts that are important to know for estate planning. So, a property owner should understand what they mean and how they apply to them. Equity is an asset that is the value of the property minus any outstanding loan amounts. For example, if a home is valued at $300,000 and the owner owes $100,000, the equity is $200,000. Given that equity is used in estate planning, Chicago Illinois estate planning attorneys should be consulted for more information about this matter. In equity, there are points that homeowners should be aware of if they wish to secure a loan on home equity. If the homeowner is unsure about going into such an agreement, they should contact proper legal professionals for more help.
Do’s and Don’ts of Equity
In the event that a homeowner seeks to take out a home equity loan, there are some things that they should and shouldn’t do:
• Keep all records of payments.
• Read all documents carefully, especially the forms that require a signature.
• Be informed of any extra fees and charges that may apply when securing the loan.
• Take on more than you can afford.
• Agree to any equity loans you don’t understand.
• Sign over any property rights.
When to Get an Attorney
Equity is complex and making a wrong decision when taking a home equity loan can have detrimental, long-term effects. An attorney should be contacted to explain equity in its entirety because this information will also be needed for estate planning. If you are looking for Chicago Illinois estate planning attorneys, the law office of Anthony J. Madonia & Associates is well-versed in equity and can answer all of your questions.