3 Ways You Can Use Your Home Equity
If you’re a homeowner, odds are your equity has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. Home equity builds over time and can help you achieve certain goals. According to the latest Equity Insights Report from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.
As you weigh your options, especially in the face of inflation and talk of a recession, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much home equity you have and advise you on some of the ways you can use it. Here are a few examples.
1. Buy a Home That Fits Your Needs
If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle.
If you want to upgrade your house, you can put your equity toward a down payment on the home of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next home.
2. Reinvest in Your Current House
According to a recent survey, 39% of homeowners would invest in home improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet.
Home improvement projects allow you to customize your home to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal to future buyers than others. For example, a report from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high-cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell.
3. Pursue Your Personal Goals
In addition to making a move or updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring, or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.
Bottom Line
Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.
Source: Ladies of Real Estate
Sushi Ato
12245 Voyager Parkway Ste 148, Colorado Springs, CO 80921
MON – FRI:
Lunch 11AM – 2PM
Dinner 4:30PM-9PM
SAT & SUN: 12PM-9PM
A full service Japanese restaurant with an All-star sushi bar, a full kitchen menu consisting of steak, beef, chicken pork and beef short-ribs and, of course, Japanese beers and sake.
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6837 Volga Dr
3 Bedrooms | 2 Bathrooms | 2253 SqFt
Hallberg floor plan with 2253 sqft, 3 bedrooms, 2.5 bathrooms, and an unfinished basement to make your own. Ceramic tile entry, baths and laundry. Walking into the spacious living room that leads to hardwood floors in the kitchen has an island and walk-in pantry and dining room that has sliding glass doors to a large backyard. The Primary bedroom has a 5 pc on suite bathroom with a walk in closet and two other bedrooms on the upper level. A must see!
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