If you own a home, you’re sitting on a wealth of equity. You can put that equity to good use, and make money with it.
Your home equity is equal to the current market value of your home minus the amount you owe on your mortgage Your home equity will rise or fall in response to local market conditions, and paying down your mortgage would increase your equity.
Make Your Equity Work For You
The more equity you have in your house, the more money you’ll make when you sell it. Alternative, take advantage of your equity, by borrowing against the home equity that you have accumulated.
Many homeowners decide to use their equity to fund a major purchase. The cost could be anything from a major addition to their home to paying off their current car loan or paying for their children’s education.
While refinancing is a good option, you need to make sure that the cost of refinancing is affordable.
If for whatever reason you choose not to refinance, you can make additional payments against the principal of your mortgage on a regular basis to reduce your balance, or you can make cost-effective renovations to raise the value of your home.
A real estate agent will assist you in determining how much to spend and which projects can provide you with a good return on investment.
Home equity is a valuable measure of your wealth distribution, but it’s most commonly used when borrowing capital. A home equity loan, such as a second mortgage or a home equity line of credit (HELOC), may be used to borrow using your home equity.
In Canada, one of the most common uses of home equity is as collateral for a home equity loan. A home equity loan is a type of loan in which you borrow money against the value of your home. Home equity loans are often used to finance major, one-time expenditures.
With a Freedom Capital equity takeout, you can renovate, build your dream home, or buy an investment property, even if the banks told you ‘no’. At Freedom Capital, we do the deals the banks won’t because we look beyond numbers.
When the banks say no, Freedom Capital has your back. Learn more About How to Make Your Equity Work For You.