If you have owed your home for a number of years odds are your equity has grown over the past couple of years. Equity is the difference between what your home is worth and what you owe to the lender. With the recent rise in home values lets take a look at a few options to make that equity work for you.
Buy a Home that Fits Your Needs
If your current space no longer fits your needs, it might be time to think about moving to a smaller or larger home. Either way you can use your equity in your current home towards the down payment of a home that fits your changing lifestyle. Your trusted local real estate agent can help you figure out how much equity you have and how to use it when buying your next home.
Reinvest in Your Current Home
Renovating is a great way to give your current home a face lift or if you're looking to change its style without moving! Making your own improvements gives you full control over craftsmanship and style. Keep in mind though that its important to look at the long-term effects or benefits from certain upgrades in your home. Make sure you prioritize projects to reap the best return on investment for when you sell at a later date and time.
Pursue Personal Ambitions
Been thinking about that dream vacation overseas again? Home equity is a great catalyst for realizing your life-long dreams! Use those funds to relax or start up a new business. While equity is a good thing you shouldn't squander it on unnecessary or frivolous things that have no meaning or impact on your life.
Understand Your Options to Avoid Foreclosure
While foreclosure numbers still below normal right now it still happens everyday to someone somewhere. If you're facing financial hardships, having a clear understanding of all your options and how your equity can help in crucial situations is key. Your equity can help as a financial buffer during unexpected challenges or situations when being able to make a payment is hard. If push comes to shove it may be better to sell with some equity than lose out on a lot more.
Home equity can be a game charger in your life in several ways! If you're unsure of your equity or been inspired call your trusted local real estate agent and loan office to start planning your next move!