If you’re a homeowner, odds are your equity has grown significantly over the last few years. Home equity builds over time and can help you achieve certain goals. According to the latest Equity Insights Report from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.
As you weigh your options, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much equity you have and advise you on some of the ways you can use it. Here are a few examples.
1. Buy a Home That Fits Your Needs
If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle.
Want to upgrade your house? You can put your equity toward a down payment on the home of your dreams. Moreover, if you’re planning to downsize, your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help figure out how much equity you have and how you can use it.
2. Reinvest in Your Current House
According to a recent survey from Point, 39% of homeowners invest in home improvement if they chose to access their equity. This is a great option to change some things about your living space.
Home improvement projects allow you to customize your home to suit your needs and sense of style. Think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal buyers. A report from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Get a local professional for best advice on projects to invest in.
3. Pursue Your Personal Goals
In addition to updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.
Bottom Line
Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.
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