What to Do with All That Home Equity |
Posted: March 30, 2018 |
It's kind of nice to get that home equity built up a bit. After owning our house for 15 years we've built a nice little nest egg up in the house itself. We bought the house for $198,000 and now it's worth $370,000. That means we have $172,000 in equity. While many people look at this as a savings plan, the money could actual do things for you. We've been debating updating our kitchen for a few years now and as that's a large chunk of change, it's been hard to pull off all at once. So, we decided to tap into that equity and pull a little out for a remodel. After all, we ARE making the investment even more valuable. This is what a refinance should do, but you can also do a lot of other things. Consider college, $172,000 can be a great investment into a child's college fund. Maybe pay off bills that have been tightening the budget each month. Or, maybe it's time to sell!? Think of putting $150,000 down on a new, larger house? Or maybe a smaller house if you're down sizing. That large down payment will make your interest rates very low and give you a nice boost of equity right off the bat. Of course, you can just sit on it too. Paying off a mortgage might sound awfully tempting. Can you imagine not having a mortgage at all? You might consider refinancing to just bring down the terms. If you're currently at a 30 year term with high interest rate, consider dropping the term to 10 or 15 years with a lower rate. You might be surprised that the payment may not be that much different. This is a great way to pay off your home faster and build equity a heck of a lot quicker. But be smart. Don't pull out equity for a vacation or something fleeting. The money is nice sitting in your bank account, but don't be foolish. Consider financial mistakes in the past and try not to get yourself back where you don't want to be. So that's what we're doing with the money. What are you going to do with all that equity? Great Tips: Did you know February and March are the Best Months to Save Money on a House? Smart Home Technology can really Boost Your Home's Value 6 Home Improvements that add Value to Your Home
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