Have questions about home equity? I have answers.
What is home equity? How do I unlock it? What can I use it for? Today I’ll answer each of these questions.
1. What is home equity? It’s the amount of money left over when you subtract what you owe on your home from its total value.
2. How do you unlock your home equity? First, you can sell your house, which would give you 100% equity. You can also do a cash-out refinance, which would refinance the whole mortgage above and beyond what the home is worth. What’s left over would be your home equity, and the lender would provide you this money at closing. Additionally, you can do a home equity line of credit (HELOC), which acts as a second mortgage or loan on your house and gives you a percentage loan on your home’s equity.
Home equity is the amount of money left over when you subtract what you owe on your home from its total value.
3. What can you use the money for? One option is to keep it as a rainy-day fund in case something in your life takes a turn in the wrong direction. Another option is to use it to make some home improvements you’ve always wanted to do or initiate some debt consolidation. Lastly, you can use it to invest in other things, such as real estate.
If you have more questions about home equity or there’s anything else I can help you with, don’t hesitate to reach out to me. I look forward to hearing from you soon!