In today’s time, it is essential to build wealth through home ownership. This can be done through home equity, which is the percentage of a property you own. Here are the best ways to build home equity while saving money:
Make a larger down payment:
Although it is not the most efficient way to build equity, making a larger down payment can actually benefit your financial issues in the future. Getting in contact with a lender can provide you market insight to further your equity.
Allow your home to appreciate:
With home values increasing over recent years, home appreciation has grown dramatically. For example, if you purchased a home for $185,000 in May 2016 with a 5 percent down payment, your home equity would have increased to 21 percent by May 2018.
Pay biweekly instead of monthly:
A great way to increase home equity is to pay your mortgage every two weeks instead of every month. This will not only build home equity, it will shave at least 5 years off of a 30 year mortgage.
Renovate your home:
To top it all of, renovating your home with new appliances and fixtures is a great way to increase value. New kitchens and renovated bathrooms are likely to help increase home equity.
For more information or any questions about how to increase your home equity, contact Chang Legal today.
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