One of the main benefits of buying a home is building equity. Once you have equity in your home, what do you do with it though?
One option would be to tap into it to invest money into your new home. Whether it be needed repairs, a renovation/addition, new appliances, or some other non-housing expense, you can tap into that equity and improve your home. You can do this by either through a cash-out refinance or getting a second mortgage. What you choose depends on your specific scenario and how much equity you are looking to pull.
Another option is to roll the equity into a new home. This means selling your home and buying a new one. Between the appreciation and you paying down your mortgage over time, you will ideally be able to net out more funds from the sale of your home than you had put down when you originally purchased it. You can use these proceeds to upgrade your home. In some instances, you may even be able to upgrade your home while keeping a similar housing payment.
If you are feeling generous, you could give it as a gift. Perhaps you have a child/grandchild who is looking to purchase a home. You could give the gift of equity to help them buy their first home.
If you have questions about how you can utilize the equity in your home, give us a call at (760)930-0569 and talk to one of our Mortgage Loan Originators.
