Ways to Build Home Equity
Everyone wants to make a little extra money, right? What if there was a way to build “cash” in your home? A little phrase called Home Equity is the percentage of your home’s value that you own. You can build home equity without blowing your budget. There are a few smart ways to build equity in your home. Some may require time, money or both. At America’s Moneyline, we can help you decide what works best for you.
1. Natural Home Appreciation
Depending on the market, your home will appreciate in value naturally. It can take a small or large amount of time depending on the location of your home, current rates, or market conditions. With home prices going up currently, appreciation has been on a natural rise for many homeowners.
2. Make a larger down payment
When purchasing your home, make sure you have a large down payment. Waiting to save cash can go against your broader financial interest. Do not lose the chance to build equity through appreciation. You can strike a balance between the market with a strong down payment and make monthly budgeting/ saving your priority. At America’s Moneyline, we can provide rate and market insight to help you do this.
3. Make home improvements
Buying new appliances or re-doing cosmetic features such as paint, are unlikely to increase the value of your home. Big improvements such as a new kitchen, adding additional bathrooms, or adding other rooms will add meaningful value.
Talk with your America’s Moneylines loan officer today on how to use your equity smartly. They will be more than happy to discuss options on how you can borrow or sell your home to access your equity. The three most well-known ways to access equity are through a HELOC (a home equity line of credit), home equity loan or cash-out refinance. Take advice from America’s Moneyline today and compare the pros/cons of each situation.