One of the many advantages of owning a house is seeing an increase in your property’s value when the real estate market is in your favor. You can boost your profit once you put your home up for sale, and you’ll also have an appreciating asset that grants you the ability to leverage equity as needed.
If you have equity and don’t know how to take advantage of it, you’ve come to the right place. We’ll teach you how to leverage your home equity without hindering your long-term financial goals.
Home equity is the difference between the value of your home and how much you owe on your mortgage. The amount of equity you have in your property changes when you make your mortgage payments and as the housing market fluctuates.
If your loan balance is worth more than your house’s value, you have negative equity and are considered underwater on your mortgage. However, if your loan balance is lower than your property’s worth, you have positive equity and can turn it into cash.
Home improvement is a common use of a home equity loan. Besides upgrading your home’s appearance or functionality, home improvements can also boost your property’s value.
The best house improvement project includes minor kitchen renovations, refinishing or installing hardwood floors, and minor bathroom remodeling.
If you’re using your home equity for house improvements, be mindful not to over-improve. Huge upgrades that aren’t on par with the overall value of your house will have a smaller chance of regaining the cash spent on the home renovations.
A HELOC or home equity loan may be an option to fund your kids’ post-secondary education. The benefit of using a home equity loan or HELOC is that you potentially secure a lower interest rate than other student loan options.
If you struggle to cover outstanding medical bills, your available home equity can help you make those payments. By tapping your equity to eliminate your medical debt, you can avoid getting harassed by debt collectors and work toward improving your FICO score.
You can also secure a better interest rate and monthly payments if you rely on your home equity instead of using a credit card.
Since the equity in your property secures HELOC and home equity loans, they can grant you the ability to borrow cash at a lower interest rate than unsecured types of credit, like personal loans and credit cards. Using these loans to pay off higher-interest debts is a great way to save money.
Make responsible decisions when you borrow against your home’s equity. Remind yourself what it took to build the equity you have and what’s the best way to use the cash from your property’s equity,
Contact our helpful mortgage advisors if you need more advice on leveraging your home equity.
Helping clients break through the barriers that impede homeownership one loan at a time. Give us a call today for help with your home purchase or refinance!
Lighthouse Mortgage Group, LLC
6250 Orchard Lake Road, Suite A
West Bloomfield, Michigan 48322
Phone: (248) 383-0026
Fax: (248) 377-0168
Lighthouse Mortgage Group, LLC strives to ensure that its services are accessible to people with disabilities. Lighthouse Mortgage Group, LLC has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Lighthouse Mortgage Group, LLC makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows lighthouse-mtg.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Lighthouse Mortgage Group, LLC accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Lighthouse Mortgage Group, LLC continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Lighthouse Mortgage Group, LLC website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Lighthouse Mortgage Group, LLC website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org