Has your home gained equity recently? We can help you calculate how much you may have acquired and show you exactly what that means for you. The benefits of building equity in a home are myriad, but here are just a few ways your home could be benefiting you right now:
Increase your net worth. Your house is likely your biggest asset and the largest part of your personal net worth. When your equity grows, your personal wealth also rises. Net worth is calculated by subtracting your liabilities from your assets, and it’s a way to track your overall financial health. A trustworthy financial advisor can help you learn more about net worth and show you how your mortgage fits into your financial portfolio.
Access cash. When you have equity in your home, you can access it through a home equity loan or cash-out refinance. If you take money out to use for home improvements, you could further increase your home’s value! Using the equity in your home can help you meet some of your financial goals sooner.
Use it to move up. When you sell your current home with its increased equity, you’ll have more money to put down for your next home. Using the profit from selling your home to make a sizeable down payment on your next one will help you afford more home for a lower monthly mortgage payment.
Despite the toll that the coronavirus has taken on our economy and our way of life, the housing market has continued to grow. As such, real estate continues to be a generally safe and smart investment over the long term. If you want to know more about building equity and leveraging it to your advantage, let’s set up a time to talk.