Tap Into Your Home Equity with These 3 Ideas
If you’ve recently purchased a home, chances are you have some home equity. But what is home equity and how can you use it to your advantage? Home equity is the difference between the market value of your home and the amount still owed on your mortgage. In other words, it’s the amount of money that you can access from your home without having to sell it. Reliant Home Funding, a Suffolk County Mortgage Company can explain in further detail how you can tap into your home equity for various personal and financial benefits.
Take Out a Home Equity Loan or Line of Credit
One of the most popular ways to use your home equity is by taking out a loan or line of credit. This allows you to borrow against the value of your house, giving you access to cash when needed. With a loan, you receive a lump sum upfront while with a line of credit, you get access to money at any time within an agreed-upon limit. It’s important to remember that whatever money you borrow will be added onto your overall mortgage balance and must be paid back with interest over time.
Consolidate Debt
Tired of juggling multiple payments each month? A consolidation loan could be the answer! By tapping into your home equity, you can combine all those pesky debt payments into one manageable monthly bill—all while getting lower interest rates than most traditional loans as well as tax deductions for certain types of loans (consult with Reliant Home Funding, a Suffolk County Mortgage Company for more details).
Invest in Home Improvements
Want to add on another room or perhaps spruce up your kitchen? Investing in renovations through using home equity could be just what’s needed! Not only does this give you an opportunity to improve the quality of life within your own space but also adds resale value should you choose to put it back on the market someday down the road (think granite countertops!). Furthermore, many improvements are tax deductible so make sure to check with an accountant too!
Using your home equity wisely is one way to ensure that investing in real estate pays off in more ways than one! Whether through taking out a loan or line of credit, consolidating debt, or making improvements and upgrades around the house, these three options offer homeowners plenty of opportunities for building wealth and long term financial security. Be sure to consult with Reliant Home Funding, a Suffolk County Mortgage Company before moving forward so that we may provide further insight about which option is best for your specific situation!
