Home equity is overall what makes home ownership such a great investment! A simple way to think of home equity is to see it as a portion of your home that you truly own. It’s the value of your home that isn’t included in current home loan. With the opportunity to increase equity, it makes it one of the most valuable assets to invest in.
To increase your equity, you simply have to make your monthly mortgage payments. How much increase you can expect depends on several factors; including how much of your payment goes toward the principal and interest. Your rate of building equity increases with every passing year of mortgage payments, which is great news!
Another way to boost your home equity is to do nothing - really! There are some areas that appreciate value faster than others; so if you are in an area with increasing property values, you can guess that yours is also going to go up.
If you would like to go the route of boosting value by making home improvements, you may want to investigate which upgrades give you the most bang for your buck and what upgrades are in demand in your area.
There are a ton of ways to take advantage of your equity and we are sure you’ve already got some ideas, but if you need some help figuring out what to do with that equity, please contact us!