Understanding Equity
Your house can do more for you than just provide a place to live. By understanding home equity, you can find out how your house can make you money. Property values are rising, and this means that your home equity is too.
Home equity is how much your home is worth minus how much you still owe on your mortgage. As your home’s value goes up and you pay off more of your mortgage, your equity grows. In a market where home values are rising, this extra value can help you build wealth.
How Home Equity Can Help You
Refinancing your mortgage can help you get back some of the money that you’ve already paid off. If you need some extra money this can be a great option, especially if your home’s value has gone up over time. A home equity line of credit is another way to profit off of your home. It’s a type of loan that uses your home’s value as a form of security. This can be used to renovate your house, invest, and more. These two choices can provide you with cash to put towards investing in real estate, paying off debts, or fund personal advancements.
Using Home Equity Wisely
Though these options can bring in some money, it’s important to be wise when deciding if this is the right choice for you personally. Whether you plan on refinancing your mortgage, getting a home equity line of credit, or neither, be sure that your decision helps you reach your goals.
How Rampone-Marsh Can Help
We’re here to help you understand mortgages and how to use your home’s equity wisely. Get in touch to find out how you can make your home’s equity work for you in 2024. Let’s work together to build your financial future.
