Do You Know the Ways You Can Use Your Equity?
November 26, 2021
When you buy your home it is a major investment. Over time of paying for your home you gain equity. What exactly is equity you ask? Equity is the value of your home above the total amount of loans you have been given for your property. In other words it is the part you have already paid off of your loan plus the price appreciation. The equity in your home can be a huge asset to you as a homeowner and can help you achieve future goals. According to CoreLogic, homeowners have gained on average a little over $51,000 in equity over the last 12 months. Do you know how you can use this growing equity to your benefit?
Upgrade to the home that fits your current needs -
Are you a growing family whose needs have outgrown the home you are currently living in? Maybe now is the perfect time to find a larger home that has the space you need. It might also be that you have had children move out and your home is now too large for your needs. In either case the equity that you have built in your home is going to be a huge help to you when you go to make your next home purchase.
Location, Location, Location -
Maybe the size of your home is fine but you would love a change of scenery. Location is everything and if it is your dream home maybe you would rather live in the mountains or maybe you do live in the mountains and you want to live on the beach. Well if equity you have built up in your home can help you make the next big move to get to your dream location.
Owning your own small business -
When you sell your home and invest in another, no one can tell you what to do with your money. You may decide to take the profits from your sale to start your own small business. Sometimes you don’t even have to sell your home to use the equity you have built up to help fund your small business venture. Doing this can help you take your equity and use it to build more of a nest egg if your business is successful.
Go after your education -
Would you like to go back to school? Do you have a child that is about to be at the age of going off to college? College today is extremely expensive and finding a way to pay for it can be such an overwhelming thought. In some cases you can possibly use part of the growing equity in your home to help pay for a portion of these college expenses. What a great way to invest in someone’s future!
Here is the bottom line friends, you can use this market and the ever growing equity in your current home to achieve whatever dream you have, if not fully achieve it you can absolutely use it to help you make the next step towards achieving it! If you have questions about how to make the next step in listing your current home or buying your next dream home contact me today! I will work for you and I will help you every step of the way!