Home equity is a powerful thing.
As you pay off your mortgage, your equity — or the stake in the home you actually own — increases. And the more equity you build, the more you stand to gain when you sell.
But even if you aren’t planning to sell your property, equity can be used in a few different ways. Consider these four possibilities if you’d like to make the most of what you have.
With a home equity loan or line of credit (HELOC), you can turn your stake in your home into money that you can use for renovations, repairs or any other cost you might be facing.
Buy a New Home
Taking out a home equity loan or other product may give you the money you need to buy a vacation home or investment property. You could also sell your existing home, turn a profit and use those funds toward your next place.
Pay Off Debt
If you have high-interest credit card debts, personal loans or car loans, you might consider using a home equity loan or cash-out refinance to pay them off. This essentially rolls those balances into your new loan (and mortgages tend to have lower interest rates than other loans or credit lines).
Use It Toward Retirement
Equity also makes a great nest egg. Once you retire, you have the option to sell your home, downsize and use the profits your equity gave you to boost your income.
Do you want to learn more about home equity? Are you looking to buy or sell a home? Reach out today for assistance.
Are you thinking about selling your home?
Supply is low and demand is high right now, which means many sellers are seeing quick turnarounds and healthy profits.
Still, despite the hot market, selling a home isn’t easy. If you want the experience to be as smooth as possible, prepping early and enlisting help are key.
Want to make sure you’re primed for a fast and profitable home sale? Here’s what you can do:
Focus on curb appeal. Curb appeal can make a huge difference, so spend time painting the shutters, power-washing the exterior and tidying up the landscaping to make sure your home catches buyers’ eyes.
Declutter and clean. Pare down your belongings and get the house looking cleaner than ever. You want it to be pristine for any listing photos and videos.
Have an exit plan. Showings can be tricky, especially if you have kids or pets. Make sure you have a plan for how you’ll keep the home clean, and know where you’ll go when a showing is scheduled.
Know your next steps. Where will you go after you sell? In a hot market, it may be hard to find a home to buy right away. Make sure you have a backup plan, like a friend’s house or a rental you can use in the meantime.
Prep for the costs. Selling isn’t free. You’ll need to budget for things like repairs, upgrades, staging costs and commissions. If you’re buying a new home, you’ll have additional costs, too.
Do you need help with your sale or want to find out how much your home is worth? Reach out today.