Your home equity can benefit you in many ways. Contact the Sean Z Team today to discuss your home equity loan options.
There are many advantages to leveraging the equity you have in your home. If the value of your home has significantly increased since you purchased it, the value of your home versus what you owe may provide you with more equity than you think. Or, you may have lived in your home for so long that you’ve paid down a lot of the principal. Whatever your circumstances, there are various ways you can consider using the equity in your home.
The Sean Zalmanoff Mortgage Team specializes in making the home purchase or refinance process a great experience. If you have questions about a loan, call us today!
Here are some ways to use the equity in your home to your advantage:
Increase the Value of Your Home
There are several ways to use your home equity to increase the value of your home. This is true whether you plan to move shortly or over some time. You might consider a significant home renovation. Particular renovations add more value than others, so it’s essential to do your research when looking for renovation ideas that fit your lifestyle, home, and homeownership plans.
Some of the most common home renovations include:
- Kitchen and appliances
- Office or closets
- Exterior upgrades – new roof, siding, paint, fence, or landscaping
- Plumbing or electrical
- Windows, especially if they are energy efficient
Consolidate Credit Card Debt
Whether it’s credit card debt or other high-interest obligations, consolidating your debt by leveraging the equity in your home can be a good idea. Remember, though, that a home equity line of credit is simply another form of a loan. You’re basically exchanging one form of a loan for another. Therefore, make sure to consolidate under a lower interest rate than that of your original debt.
Using your home equity to consolidate credit card debt can save you money. It can reduce your expenses by spreading the payments out longer. But one critical thing to keep in mind is that it’s often too easy to slip back into credit card debt. Don’t use your home equity to pay off your credit cards, only to rack up that debt again.
Pay for Education
Another popular way people use their home equity is to pay for upcoming college expenses for a child or other family member. Since higher education can be expensive, utilizing your home equity can eliminate the need for student loans. If the interest rate for your home equity loan is lower than the student loan rates, this option can save you money.
Other Ways to Use Your Home Equity
In addition to the above uses, your home equity can benefit you in other ways. Some of these additional ways include:
- Increase your home’s energy efficiency – new windows, doors, or appliances
- Add a new addition to your home – increase square footage
- Plan an amazing vacation
- Create an emergency fund
- Invest in real estate
- Handle an emergency expense
Contact the Sean Z Team
Leveraging the equity in your home has many advantages. To discuss your options, contact the Sean Z Team today. We are committed to making sure that you can receive the funding you need and helping you make the best decision.