Q: What’s the Best Way to Utilize Your Home’s Equity?

Here’s how you can take advantage of your home’s equity.

Since we’re in such an extreme seller’s market, we’re seeing a lot of home appreciation, which means now may be a good time to utilize your home’s equity. There are several ways you can do this. 

For example, some of our clients have reached out to us about taking advantage of these low interest rates and refinancing. If you’ve lived in your home for five years or longer, now may be the time to reach out to your mortgage provider and ask about getting rid of your private mortgage insurance. We’re seeing home values rise significantly, so you could be closer to getting rid of this than you think. Or, if you’re thinking of making some home improvements, you can use your home’s equity to finance those upgrades. 

It’s safe to say that most of us consider buying a home the biggest financial investment we’ll ever make, and many of our clients have used the equity they’ve built to consolidate their debt. It’s always good practice to pay less interest by using the equity in your home to consolidate your debt. 

Many homeowners who bought their first home with us a few years ago are reconnecting because they want to buy an investment property. Granted, with everything that’s happened the past several months, not everyone has six months’ worth of financial reserves to use as an emergency fund when buying an investment property, so keep that in mind before deciding on this course of action. 

It’s always good practice to pay less interest by using the equity in your home to consolidate your debt.

If you’re looking to build more equity, we suggest reaching out to your home insurance company to see if you can get a lower insurance rate. You can save as much as $50 per month while maintaining the same mortgage payment as before. 

Regardless of what your plans are, we have the contacts and expertise to help you get started. If you’d like to talk more about utilizing your home’s equity or would like a free home valuation, don’t hesitate to reach out to us. We’d love to speak with you.