Using your home as an asset comes down to one word: equity. Home equity is the value of your home minus any outstanding liens that are attached to the home. Home equity is a tool that can be used in many ways. Let’s look at a few examples…
Refinancing:
There are times when bills and other debts pile up beyond your control, and throw off your monthly budget. Refinancing your mortgage may significantly reduce your mortgage payments and afford you time and space to pay down higher interest debt and bills.
Home Renovation:
After living in your home a while, you may want to make some modifications around the house. You can take out a loan against the equity in your home to avoid depleting reserve funds and potentially increase the value of your home.
Home Purchase:
If you are in the market for another home; home equity will play a major role in how much money you have to pay out of pocket to purchase your next home. Building more equity means less money out of your other financial accounts.
It’s Important to note that even when you have a mortgage, your home is still an asset; the question is how much equity do you have available.
Norman Hardman
Prestige Property Brokers
Licensed Realtor GA & AL
706.405.8357
