Homes go up and down in value, which is good and bad for homeowners. In instances where a home is worth more than the buyer paid, the homeowner can leverage their home equity when money is tight. Learn how to leverage your home equity by reading on.
For starters, home equity is a type of loan that offers fixed interest rates, fixed repayment terms, and fixed monthly payments. These loans are secured by the equity you have in your home, adding some extra security in comparison to unsecured personal loans. To qualify for a home equity loan, you need a high credit score, significant equity in your home, and your income may even be evaluated.
Once you receive a home equity loan, you can use it to borrow money and put these funds towards investments. One potential investment to consider is home improvements. Think about replacing your roof, fixing the garage door, or making upgrades to the home that can increase its value. This savvy move can help you receive as much as a 98.3 percent return.
Another ideal investment you can make with your home equity loan is an investment in higher education. College is expensive, but it can help you or your children make more money in the future. Individuals with degrees are more likely to receive a higher annual salary, helping the home equity loan pay off itself.
A smart way to use your home equity loan is to consolidate credit card debt. Lower interest rates, grow your credit allowance and even watch your credit score increase when doing so. With a higher credit score, you can reap the benefits of a trustworthy history.
These are just some of the perks of leveraging your home equity. Learn more about the benefits of home equity and receive some assistance in the loan process with AHL Hard Money Network. Text or call us at 813-368-9919 today!