Make the most of your Home’s Equity
Financial gurus will tell you, that one of the best ways to build wealth is to invest in real estate. For most of us, the home you live in is the biggest real estate investment you’ll ever have. To make your investment grow, you need to build up the equity in your home.
If you are unclear as to what equity is and more specifically what home equity is, don’t worry, we’ll take a minute to explain.
Home Equity is simply the difference between the market value of your home and how much you owe on your mortgage. As you make your mortgage payment each month, in a typical market, you are building equity.
Banks offer loans against the equity people have in their homes to help them utilize their equity now rather than waiting until they sell their home. These types of loan products are called Home Equity Lines of Credit or HELOCs. There are many reasons that people apply for a HELOC. Some of the most common are:
- To make home repairs or improvements
- To pay down or off debt
- To purchase a vehicle
- To pay for your children’s college education
- To start a business
If you have lived in your home for a number of years and have been making regular payments, your investment has likely grown. You can make the money you’ve invested in your home work for you. If you need access to capital for one of the reasons listed above, we may be able to help. WVFSL has some great options. Give us a call to speak with a loan specialist or head to the loan page of our website.