How Home Equity Works Part 2:
So you have equity in your home. So what do you do with it? Well, there’s three things I want to go over with you.
The first one would be to get a refinance. Basically, let’s say you’re buying a home right now, interest rates are a little higher, but at some point, these interest rates will go back down. Whenever they do, you can refinance, which means you get a lower interest rate and then you can take the cash out and do something with that. For example, you can do some renovations on your home.
The second thing that I want to talk about is that you could just actually get a home equity line of credit. (HELOC) So let’s say the interest rates are still high. Then this way, you can actually still get the equity out of your home and do renovations on the home that you wanted to do.
And the last option I want to talk about is that you could just simply buy another property, whether that’s an investment property or vacation home. That would be a great idea. Depending on the amount of equity you have you can use the equity as your down payment and/or closing costs on your next home or have enough to buy the entire home and have some money left over for renovations depending on the equity amount and the price range of the home you’re looking to buy. So that’s it.
If you have any questions, you can leave a comment below, you can private message me, you can text or call me at 248-780-2521 or email me at [email protected]
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This has been a presentation on How Home Equity Works Part 2.