Homebuyer Tips, Homeowner Tips, Mortgage Tips, Mortgage Tips — February 21, 2014 at 1:59 pm

Helpful Tips To Create Equity Within Your Home

Smart Ways To Use The Equity In Your HomeAlthough we all assume when we buy a home that the value will go up from what we paid, a stagnant recovering housing market has made this process a little slower over the past few years than it was prior to the crash. But all is not lost. For one, your mortgage payment is a bit like a savings account each month. As you pay down the balance, you’re earning equity in your home. There are also some things you can do to help improve the value of your home and make your current time in it more enjoyable as well.

Home equity is the difference between what your home can sell for and what you owe on it. Generally, the longer you own your home, the more equity you build.

This is money you can use before you sell your home through a home equity loan. Just keep in mind that a home equity loan is secured with your home. If you can’t make the payments, you can lose your home.

Use Your Home Equity In Smart Ways:

  1. Remodel Your Home – If you’ve wanted to add on a family room or modernize your kitchen, consider using your home’s equity to fund the project. Home improvements usually increase your home’s marketability and value.
  2. Make Needed Major Repairs – Your home’s equity can be a funding source for major repairs like plumbing problems and re-roofs. Once again, this is an improvement for your home that will help keep its value up.
  3. Buy Another Property – Real estate is still a safe investment. You can use your home equity to buy a second property when home values are down. When the market recovers, you can sell the investment property for a profit. This also works if you have to move out of town and are still trying to sell your home. If you can afford the payments, use your home’s equity to purchase your new home until the current one sells.
  4. Pay For Unexpected Medical Expenses Or Job Loss – You never know when a medical emergency or job loss will leave you in debt. A home equity loan can give you the money you need to get through this difficult time.

For a complimentary analysis of your current mortgage and equity position, contact your local Summit Mortgage Loan Officer today!  www.summit-mortgage.com