There are plenty of benefits to homeownership, including the satisfaction of personalizing your home and becoming part of a neighborhood. There are some big financial benefits as well. One requires little effort besides paying your mortgage: equity.
Equity is a simple equation: the difference between how much your home is currently worth and how much you owe on your mortgage.
For a ballpark estimate of your home’s current equity, subtract your current mortgage balance from the appraised market value of your home.
Example: If your home is currently valued at $320,000 and your remaining balance on your mortgage is $140,000, your equity adds up to $180,000.
Want to put some of that equity to work for you? Check out equity-based lending products like home equity lines of credit (HELOCs) and home equity loans. These products reward your investment in homeownership by providing large sums of funding at an attractive interest rate. They can help you finance home renovations, college tuition, even a new car or truck… at a lower interest rate than many other forms of credit. They’re also a smart way to pay off high-interest credit card debt.
Want to learn more? Call or message us and we’ll provide you with a complimentary estimate of your home’s current equity in the Prescott / Quad Cities market.
Resources
- Consumer Financial Protection Bureau – Home Equity Loans & HELOCs
- Contact The Kuknyo Team for a free local equity snapshot: prescottarearealtorteam.com