Tag: home equity

How You Can Build Up To Receive Home Equity Loans

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Home equity loans are beneficial, since they allow you to use your home’s equity for several different purposes, but you have to be careful what reasons you use the loan for. Every individual has different financial circumstances, but there are some main do’s and don’ts when it comes to home equity.

Improve your home– Making improvements to your home is a safe way of using home equity loans. Using the funds to modify your living space will increase the overall value of your home. Completing a one-time project in your home is another safe way to utilize home equity funds.

Consolidate debt– Minimizing balances, like high-interest credit card debt is another way to put good use to your home equity loan. Lowering the percentage of interest you have to pay with the home equity funds can end up saving you thousands of dollars. Be sure to make financial changes, so you do not end up in more debt than you were before.

Do not splurge on luxury items– Using your home equity funds for vacations and expensive material items is not beneficial in the long run. Home equity loans should not be seen as extra spending money, but rather as an investment. Irresponsible spending with home equity funds can lead to you losing your home.

Do not use home equity funds for basic expenses– Your basic bills like, grocery, utility, and clothing expenses should be covered by your household budget. Changes in your financial life need to be made if you cannot afford to pay for these regular expenses.

For more information on home equity loans and financial guidance, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

How To Build Home Equity

Posted by David Chang on with 0 Comment

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.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.