Build Your Home Equity
Tuesday Aug 03rd, 2021
Your home equity is the value of your home minus the amount of mortgage you owe. Home equity fluctuates alongside the market, but there are ways you can increase your home equity.
Now, home equity is valuable to you for a variety of reasons. You can borrow against your home if you have good credit scores, you can cancel private mortgage insurance when your equity reaches 20% or more, and you can sell for a greater profit the higher your home equity is.
No matter what your situation is, the goal is always to get the highest possible return on investment for any homeowner. That means your home has to rise in value or be debt free if you’re a homeowner, and generate a passive income if you’re a landlord as well.
There are a few common ways in which you can increase your home equity:
- Refinance your home with a short-term loan that you can pay off quickly. It makes financial sense.
- Make extra payments on a regular basis towards your principal loan and reduce your balance as fast as possible.
- Make economical home improvements that increase the home’s value.
Home equity can be a great way to diversify your investment portfolio and make your equity work for you. You can invest in a project that would yield and ROI that offsets the cost of borrowing. You could borrow money to pay off debts. You could renovate your home and bring it closer to the dream home you want instead of moving. Or you could borrow money to buy a cottage and use it as a vacation home, retirement haven or generate a passive income. Having all the information possible allows you to weigh your choices and make the best decision that suits you and your family – benefitting you both financially and emotionally as well.
Deciding what route to take can be tricky, so it’s best to ask an expert to help you figure out what to do, how much to spend and what project will be worthwhile to get the ROI you want. As an equity master, doing just that happens to be my specialty. Book a consultation today.