Homes are one of our greatest assets, serving as both a place where we live, laugh, and love, but also for where we work and manage our other side jobs. By increasing this asset and building equity into your home, you can improve your home’s value and create an alternative way to increase personal wealth. But what is home equity, you may be asking? In layman’s terms, it’s the difference between what your home is worth and how much mortgage and other loans secured by your home. But how does one increase it? In this blog entry, we’ll be showing you how to do just that.
The first way to build equity is a simple one; keeping your home. Your home’s value may go up and down, but that’s just how the housing market works. However, home values tend to increase over time, so the longer you own your home, the more equity you’ll carry with it. Second, there’s adding value to your home. Consider renovating any parts of your home that require finishing, renovation, remodeling, or even making new additions like decks, patios, home theaters, or even a pool! Lastly, there’s reducing your debt. The less you own on your mortgage, the more significant equity you have, and there are several ways you can reduce your debt. Whether you want to make a more substantial down payment, change your payment frequency, or even pay more each time, these seemingly simple ideas can make a huge difference when it comes to getting more equity.
The more equity you have, the more wealth you have, and at Mortgages Done Right, our team of home loan experts understand and know how frustrating it can be when it comes to navigating understanding specific processes like equity. If you’re looking to learn more about home values or want are looking for a home loan or anything else of the like, our team of expert brokers can help! Call us today to learn more about our services and keep updated on our blog.