Owning a house can come with many advantages, including an increase in property value when the real estate market is rising. Not only does this mean a profit when you put your home up for sale, but also grants you the ability to leverage equity as needed. If you have equity and are unsure of how to take advantage of it, here are 5 options.
Debt Consolidation – with interesting rates rising, the interest payments on credit cards and personal loans can be big part of the payment. If you have equity a loan to consolidate the debt into a lower interest rate may be worth considering (of course be careful not to incur too much new credit card debt).
Higher Ed – if you have children getting ready for college – a HELOC or home equity line of credit may offer a lower rate than student loans.
Medical Expenses – If you have outstanding medical bills a HELOC can potentially offer a lower rate and avoid credit score issues with late or missed payments
Home Improvements – if your home has increased in value, one of the most popular uses of equity is a home improvement office – this can be as large as a new edition, a kitchen remodel or a bathroom upgrade.
Of course, please schedule an appointment with us if you are considering leveraging your equity and we can advice you on your specific situation.