Using Equity

Chances are, if you scored a great mortgage interest rate in the past few years, you’re already sitting on a bunch of equity in your home. Depending on how long you’ve had your mortgage, the amount of equity you’re working with could be a considerable amount. In fact, a recent equity report from CoreLogic states that the average American homeowner holds over $270,000 in equity. Here are some ideas on ways to use that money!

Reinvest 

With mortgage interest rates hovering near 7% right now, you may or may not be looking to actually move homes. Instead, you may be wanting to reinvest your equity into making your home exactly what you want. It’s a great idea to use equity to fund big ticket renovations, like upgraded kitchens or bathrooms, or making an addition. Equity can also help fund expensive necessities, like a new roof. 

Goalsetting 

Equity doesn’t have to just be used in a home related way. Perhaps you have other dreams or goals that you’re hoping to attain but you need funding to do it. It’s not wise to dip into equity for frivolous things but using equity to fund higher education, capital for a business venture, or to finally retire, can actually be a good thing. Speak with a financial advisor if these are your goals!

Move

Ok, perhaps your equity is large enough that a seemingly high 7% mortgage interest rate isn’t scary. Well then: use your equity to make the move for you! Maybe your current home no longer serves you and your family. Equity can make moving to a perfect space much easier. A license real estate agent can help you figure out what equity you’ve built and how to best bankroll that into your new dream space.