Equity — or the share of your property you actually own — is a benefit to any homeowner. For one, it means more profits when it’s time to sell. On top of that, it can also give you cash when you need it — either through a refinance or home equity loan.
Fortunately, building equity can be easy. Every month you increase your home equity by making your mortgage payment.
If you want to build your equity even further, there are several ways to do it, including:
- Increasing your down payment. The more you put down, the less your lender will need to loan you, and the larger your equity stake will be.
- Paying more on your mortgage. Putting extra toward your mortgage loan — either each month or a few times a year — can help you pay down your balance and increase your share. Consider putting your annual tax refund toward your loan to really make a dent.
- Buying in an up-and-coming market. If home values in your neighborhood start to rise, so will your property value. That can mean more equity, too.
- Refinancing your loan. With a short-term loan, like a 15-year, you can pay down your balance faster (and sometimes get a lower rate as well). This can help you build equity more quickly.
Bonus Tip: Renovating your home. Anything that improves your home’s value also increases your equity. Choose your projects wisely, and reach out if you need some help getting started.
Do you have questions about home equity? Or are you planning to buy or sell property this year? Reach out today. Contact Sarah on this website at www.CallSarahFirst.com/contact.
This article was provided by Sarah Marrinan. Find more great info on Sarah’s website at www.CallSarahFirst.com/about.
As the MN RRC Education Leader and Certified Residential Specialist with multiple additional real estate designation, certifications, awards and experience, Sarah Marrinan would love to share her knowledge and expertise of the home buying and selling processes. Proudly servicing the Twin Cities, MN with extra focus in these areas: White Bear Lake, Hugo, Lino Lakes, Centerville, Vadnais Heights, Shoreview, Mounds View, Circle Pines, Mounds View, Mahtomedi, Forest Lake, Columbus, Wyoming, Saint Paul, Minneapolis, Roseville, Lake Elmo, Stillwater and Oakdale, MN.
