Home Equity (What You Want To Know Wednesdays)

Equity is the market value of your home minus what you owe. Building equity can be a long-term strategy for growing wealth. The increasing value of a home is a resource that can gain momentum over time.  Mortgage payments reduce what you owe on your loan and as a result, increases your equity.  You can call it a “forced savings account.”  The longer you stay in a home the more likely you are to accrue equity.  Over time, your home can become your biggest asset. How can you use this to your advantage? Below are some reasons to consider taking advantage of the equity in your home:

  1. Consolidate Debt – you can pull cash out of the equity of your home to help pay off debt.

  2. Remodel – You can increase the value of your home by remodeling – why not use the existing value in your home to increase what you already have!

  3. College Costs – You can use some of the cash from your equity to help offset educational costs.

 You can refinance your home to pull cash out of the equity in your home, or you can consider a HELOC (Home Equity Line of Credit.)  There are several options for you when you want to pull cash out of your home equity.  

 

Speak with a Mortgage Professional today!

 

 

**nerdwallet.com


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.