3 Ways Home Equity Can Help
Homeowner equity has dramatically increased over the past few years. Despite this, there’s still confusion over what equity is and how a family can leverage it to their advantage. Equity is the difference between the current market value of your home and the amount you owe on your mortgage.
Having equity in your home can dramatically impact your life. You can actually utilize your equity to help with your current financial situation. It’s a savvy way to borrow money.
Here are three good reasons to consider using your equity.
1. You’re experiencing financial hardship
Equity gives you options during difficult financial times. With equity, you could refinance your house to get cash to ease the burden.
If you’re in this position, even if you can’t get a modification, the equity allows you the option to sell your house and walk away with your equity.
2. You need money to start a new business
We’ve all heard the stories about how many great American companies started in the founder’s garage. What we might not realize, however, is that the garage (along with the rest of the home) supplied the start-up money for many of these companies in the form of a refinance.
If you’re passionate about an idea you have for a new product or service, the equity in your home may enable you to make that dream of a cupcake factory a reality.
3. You want to invest in a loved one’s futur
It’s been a long-standing tradition in this country for households to help pay their children’s college tuition, wedding expenses, or assist in their first home purchase.
It’s safe to assume a percentage of that money likely came from home equity.
What You Need to Know
Homeowners often lean on their equity for good reasons. With fixed interest rates and a lump sum of money, there are countless ways it can help. Talk to our loan experts at the Green Mortgage Team today to find out more about leveraging your equity for good.
-Kyle Green
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