4 minute read
Mortgage: Leveraging Equity
from NORTH by Colorado Media Group - JUN/JUL 2023
by Colorado Media Group :: NORTH, The Digest/CSBJ & So. Colorado Insider!
How to Best Leverage Home Equity
by Michelle Bobart, Certified Mortgage Advisor
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 principal 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 average equity gain for the U.S. homeowner year over year was $14,300.* (See Source link below)
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/
MORTGAGE LENDING IN ALL 50 STATES
Michelle Bobart NMLS 137164 | Guaranteed Rate, Inc. NMLS 2611 - For more information visit nmlsconsumeraccess.org AK - AK137164, AL - 72981, AR - Licensed, AZ - 1007852, CA - CA-DBO137164, CO - 100035767, CT - LO-137164, DC - MLO137164, DE - MLO-137164, FL - LO17860, GA - 67205, HI - HI-137164, IA - 34440, ID - MLO-2080137164, IL - 031.0002302, IN - 14945, KS - LO.0039572, KY - MC701827, LA - Licensed, MA - MLO137164, MD - 137164, ME - Licensed, MI - 137164, MN - MN-MLO-137164, MO - MO-137164, MS - 137164, MT - 137164, NC - I-189254, ND - NDMLO137164, NE - Licensed, NH - Licensed, NJ - Licensed, NM - Licensed, NV - 66499, NY - Licensed, OH - MLO-OH.1371164, OR - Licensed, PA - 76869, RI - Licensed, SC - MLO - 137164, SD - MLO.08664, TN - 204296, TX - Licensed, UT - 12468410, VA - MLO-13110VA, VT - VT137164, WA - MLO-137164, WI - 137164, WV - LO-137164, WY -
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