Using Equity to Upgrade Your Lifestyle

If you've owned your house for a couple of years or more, there's something cool you should know about – it's called home equity

In this blog post, you’ll learn:

-What home equity is and how is calculated
-How your equity grows over time
-Explore practical ways to put your home equity to work
-Watch: VA Loans series: Everything you need to know

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Don't worry if that term sounds new; Freddie Mac explains it like this:

"Home equity is the difference between how much your home is worth and how much you owe on your mortgage."

So, as you pay down your home loan and home values go up, your equity grows. Even though home prices had a little dip last year, they've bounced back and are climbing in many areas. Here's why that's good news for you.

In the latest Equity Insights Report, Selma Hepp, the Chief Economist at CoreLogic, breaks it down in simple terms:

"With price gains helping homeowners build wealth, equity has reached a new high, recovering from the losses of last year. The average U.S. homeowner gained over $20,000 more in equity compared to the third quarter of 2022. Some markets are seeing even bigger increases as prices catch up."

And that's just in the last year. To help you really get what that means over time, the report says the average homeowner with a mortgage has more than $300,000 in equity. That's a pretty big deal.

Here are some cool things you can do with your home equity

Upgrade Your Home

If your current space doesn't fit your needs anymore, it might be time for a bigger or smaller home. You can use your equity for a down payment on something that suits your changing lifestyle.

Spruce Up Your Place

If moving isn't on your radar yet, use your equity to improve your current home. Think about upgrades that will boost your home's value in the long run. A real estate agent can guide you on which projects give you the best return when you decide to sell.

Chase Your Dreams

Home equity can help you make your lifelong dreams come true. Whether it's starting a business, planning for retirement, or funding education, using your equity responsibly for something meaningful can make a real difference.

Stay In Your Home

If financial times are tough and you're worried about foreclosure, having equity can be a lifesaver. It can act as a cushion if you're struggling to make your mortgage payments on time.

In a nutshell, if you're curious about how much equity you've got, talk to a local real estate agent. They can do a pro equity assessment and guide you on how to use it to reach your goals in a friendly and easy way.

Haven Real Estate Group
www.homesforsalemhk.com