Ways to Use your Home's Equity - Written by Hillary Tuite
Did you know your home's equity can be a valuable tool when it comes to financial planning? Simply put, your home's equity is the difference between what your home is worth in the current market and the amount you still owe on your mortgage. You can gain equity each time you make a payment towards your mortgage, or when the market indicates rising home prices in your area.
A common way to capitalize on your home's equity is to use it towards home renovations. Does your roof need repair or maintenance before you sell? Have you been thinking about a kitchen remodel or installing a backyard pool? Your equity can be a great option for a collateral secured lower interest rate loan to fund these projects!
You can also take advantage of your home's equity when looking to consolidate debt. Consolidating debt, such as high interest credit cards or personal loans, into a lower interest home equity backed loan can allow you to pay less towards interest each month. Paying less interest and more towards your principal balance will allow you to pay off your financial obligations sooner.
Aside from managing home projects and debt, your home's equity can be used to grow your investment portfolio too! Being a buyer in a competitive market can often mean leveraging your cash resources in order to strategically place an offer on a new property or other investment opportunity. Your home's equity may be an untapped resource to access cash reserves to invest in your long term financial future.
These are just a few of many ways to make your home's equity work harder for you. If you have ideas or goals, let’s connect and talk about how to utilize your home's equity to make them a reality!
-Hillary