How To Make The Most Of Your Home Equity For Upcoming Renovations
Are you thinking about using home equity to improve the status of your home? Employing the equity in your home is a brilliant way to fund renovations as you don’t need to wait too long to obtain the necessary finance. Similarly, as the interest rate on equity loans is lower than most financial products, you won’t find it very difficult to repay it over time. By paying down your high-interest debt, your credit score will improve and you will only have one monthly payment to worry about.
However, to ensure you have sufficient equity in your home to pay for your renovations, there are a few steps you need to take in order to prepare. To enable you to effectively increase your home equity, experienced mortgage expert, Angela Milosevic has explained how to make the most of your home equity for upcoming renovations.
1. Pay down your mortgage
Your home equity is the difference between your property’s market value and the debt you owe against it. As a result, by paying down your mortgage, you’re building equity in your home. This means you’ll have more money to utilize for your renovation. With current low mortgage interest rates, you will be paying down your mortgage faster.
2. Increase your property’s value
Increasing the value of your property is another way to enhance your home equity. When your home’s value rises, it allows you to borrow against that built equity when you need to fund other significant expenses such as home renovations.
3. Schedule an appointment with me
To access your home’s equity, you’ll need to obtain a mortgage product like a home equity loan or Home Equity Line of Credit (HELOC). These products come with interest rates and repayment terms and conditions that must be negotiated to ensure they’re in line with your needs. To ensure you acquire an ideal product that suits your needs, schedule an appointment with me, and I’ll handle the rest!