How to Best Leverage Home Equity

In my 25+ years in the mortgage industry, I’ve partnered with over 3,500 clients and real estate agents to create a customized mortgage solution to fit each individualized portfolio in every economic situation. The recent strength of the housing market has led to more than 75% of U.S. homeowners having at least $100,000 in home equity. This increase has been driven by the combination of rising home prices and homeowners making extra prin cipal payments, as well as a decrease in homeowners with negative equity (owing more on their mortgage than the home is worth.) This positive development for homeowners has increased their wealth and financial stability.

As you can see on this map, with the exception of a few states, the aver age equity gain for the U.S. homeowner year over year was $14,300.*

by Michelle Bobart Certified Mortgage Advisor

Michelle Bobart is a certified mortgage advisor with Guaranteed Rate and is licensed in all 50 states. You can reach her at 312-953-7365

While I don’t recommend using home equity in every circumstance, it is important to manage this valuable tool in your overall financial plan. I advocate using home equity in responsible ways that help grow your wealth. Here are a few considerations for making the most of your home equity:

1. Home Improvements: Using your home’s equity to fund renovations or improvements can help increase the value of your property and potentially boost your resale value. This can be particularly beneficial if you plan to sell your home in the near future.

2. Debt Consolidation: Homeowners can use home equity to pay off high-interest debt, such as credit card balances and student loans. Consolidating debt into a single low-interest loan can help reduce monthly payments and save money on interest charges over time.

3. Education Expenses: Home equity can be used to fund education expenses, such as college tuition or vocational training. This can be a particularly attractive option for parents who want to help their children pay for their education without taking on high-interest student loans.

4. Real Estate Investments: Homeowners with significant home equity can consider using it to invest in real estate, such as rental properties or vacation homes. This may potentially generate additional income and diversify your investment portfolio.

5. Emergency Expenses: In cases of unexpected expenses, such as medical bills or home repairs, home equity can provide a source of cash to cover these costs. However, it is important to use this strategy with caution.

Overall, leveraging home equity can be a smart financial strategy, but it should be done with careful consideration and planning. I would love to strategize with you to discuss how to best leverage your home’s equity – and keep your best interest at heart. Please contact me for your complimentary mortgage consultation.

*Source: https://www.corelogic.com/intelligence/homeowner-equity-insights-q4-2022/

One of Colorado Springs’ most sought-after professional, residential Realtors, Marquesa has helped hundreds of clients achieve their real estate goals.

Recognized in the top 1.5% of Realtors in the area with over $23M in closed transactions in 2022, she has earned the respect of clients and colleagues alike.

As a 24-year resident of COS, she believes this is the best place to live, work, and play in the country. She is also passionate about supporting her community through volunteer work and advocacy, small business growth and development, and spending time with her family.