How to Use Your Home’s Equity for Home Improvements and Updates
Home equity is the un-mortgaged value of your home. As you pay down your mortgage and your home value rises, you’ll gain access to more equity. That value is very important and can be quite substantial. It provides you with a way to obtain a low-cost loan to use as you see fit. Putting that money back into your home can offer even bigger benefits, including helping your home to become more functional for your family. It can also further increase your property’s value.
Do You Have Home Equity?
It’s hard to know how much equity you have in your home unless you contact your local bank or work with a home appraiser. These professionals will help you determine how much your home could sell for if you sold it on the market today. It is this value, minus the value of your current mortgage, that yields the equity available to you.
How Much Can You Borrow?
In most cases, you can borrow most of the equity in your home. This depends on the type of home equity loan you select and the lender’s qualifications. Keep in mind that having a good credit score and reliable income can help you obtain more.
What Can You Use Your Home Equity For?
Just think of all the great things you can do with a home equity loan. Start saving money today by consolidating your high-interest credit card debt. The rate on your home equity line of credit can be as much as 15% lower than credit card rates. Increase the value of your home by remodeling your kitchen, installing a new floor, or maybe even getting your house painted. Pay medical bills, purchase a car, or go on the vacation you have always dreamed of, or use the money to pay college expenses.
The equity in your home is a valuable resource; make the most of it by making it work for you.