December 15, 2021
Make the Most of Your Home Equity!
Over the course of the pandemic, the housing market has skyrocketed. What does that mean for you as a current homeowner? It means that more than likely your home equity has increased! Read on and learn how you can make the most of your home equity.
What is Home Equity?
If you calculate the current value of your home against the balance of your mortgage then you have calculated your home equity. Since prices of homes have increased across the nation, then the value of your current home has more than likely increased also. A recent study by CoreLogic showed that homeowners gained an average of $51,500 in home equity over the past year. You may have options available to you that you have only dreamed of in the past. To help you make the most of your home equity, we put together a list of the best ways to take advantage of it.
Ways To Make the Most of Your Home Equity
Re-Evaluate Your Current Home
Does the home you are currently in fit your needs? Perhaps you need more space to accommodate a growing family, another room for a home office, want to lessen your daily commute, or perhaps your current home is now too big to easily care for? You can make the most of your home equity to fund a move into a home that better fits your current needs.
Perhaps your home fits your current needs but the location does not. Have you been dreaming of living in a quiet, rural countryside or dreaming of living closer to the hustle and bustle of city life? Perhaps you would like to be closer to loved ones or in a new school district? Now could be a great time to put your home equity to use and make that move!
If you decide you want to make a move to make the most of your home equity, you will want to take advantage of our new full pre-approval process! This process presents you as the strongest buyer and guarantees the fastest closing possible. Learn more on our blog post Full Pre-Approvals Give the Fastest Closing.
Save For Education
Refinancing your current home could free up monthly dollars to put towards a college fund, private school tuition, or to advance your own credentials. According to the Federal Housing Financing Agency, almost 57% of mortgage owners have an interest rate of less than 4%. Refinancing now, before the housing market increases again, usually means you keep your current rate of 4% or less. If you are one of those that have an interest rate of more than 4%, you may be able to refinance with a cash-out and use that money towards education or other needs.
Start Your Own Business
If you are not ready to relocate, upgrade or downsize your home, you could choose to make the most of your home equity by investing in your own business. Many small business owners were able to kick start their business, through the funds they received from their home equity. What has only been a distant dream, could actually become a reality for you!
Method Mortgage is Here to Help
No matter what your goals are, the team at Method Mortgage is here to help. We can help you crunch the numbers and find the way to make the most of your home equity. You can apply online to get the process started or contact one of our lending professionals who are ready to help answer any questions you may have. When it comes to your mortgage, you need a helpful road map, as well as a friendly guide. Let Method Mortgage lead you to the smartest way home.