Does Newfound Wealth Reside in Your Home’s Equity?
If you own your home, you may be a good bit richer and not even know it. How? U.S. homeowners gained an average of $55,300 in their home’s value (minus their mortgage) in 2021, according to the Washington Post. The jump in housing prices is great for sellers, but what about those not looking to make a move?
Creative Financing Solutions
You’re happy in your home, and you’ve gained equity in it. Fantastic! Even if you don’t have plans for moving, you may have a list of home improvements that could add value or increase comfort and functionality. What’s on your list? Could you use your untapped equity to your benefit?
A revolving line of credit based on the equity you have in your home—a home equity line-of-credit (HELOC)—is a creative financing solution. You can draw on it at any time during your draw period, as long as you continue making your regular payments, of course.* Plus, a unique benefit of our HELOC is payment flexibility. You have the option of making interest-only minimum payments during your draw period.
Or, are you interested in a one-time lump sum rather than a revolving line of credit? A home equity loan may be the right choice for you. With a fixed rate and term, this option is often used for a specific purpose, such as building onto your home.
How Else Can You Use Your Home’s Equity? What’s the Right Choice?
While traditional uses for tapping into the equity in your home include improving it or adding to its value, you could also use the equity for a down payment on a second home or investment property, consolidating credit card balances or keeping it as a safety net for the unexpected, among other options. Once you know what you want to achieve, take a closer look at the benefits and conditions of your financing options and schedule an appointment with a financial coach who can help advise you on the right choice for your situation!
Use the Equity in Your Home to Your Benefit!
*Important Terms of our Home Equity Lines-of-Credit.
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