Take Advantage of Your Home’s Equity

Home equity means what

The portion of your home that you, the homeowner, actually own is what’s defined as your home’s equity. Meaning if you were to appraise your property (what it’s worth in today’s market) and subtract from that value any outstanding mortgage debt, you would be left with your home equity. This equity is created either by paying off your home’s mortgage over time and/or when your home appreciates over the remaining loan balance.

Did you know that the Greater Scranton housing market has appreciated by an average of 10.2% per year over the last three years?*

Furthermore, have you ever thought about what you could do with all your equity?

Three ways to access your equity

Sell your home

Speak to your real estate professional about how selling your property could affect your net worth. There are things to consider when selling such as real estate commission fees, repairs that might be made to the property before placing it on the market, closing costs and other fees. By deducting these expenses from the projected purchase price, you’ll get a good sense of your home’s equity.

Getting a home equity loan

If you have an investment idea or are reinvesting in your home and you need a fixed dollar amount, then a home equity loan might be perfect for you. This option provides the homeowner with the funds all at once. This loan typically has a more favorable rate than other personal loans, which may be available. Home equity loans have fixed rates with monthly payments, so if the interest rates climb your payments wouldn’t be affected.

Take on a home equity line of credit (HELOC)

Another way you can use the equity in your property as collateral is to utilize a HELOC. Think of this possibility as a “credit card.” It’s a revolving line of credit that typically has a lower rate than many other loan options.

Whenever you tap into your equity, you’ll want to make sure you’re making wise investment decisions, ones where you put your money into appreciating assets. Maybe you want to renovate your home or purchase a new investment property. Borrowing against your home by using up some of its equity is a great way to achieve this and increase your net worth.

Other helpful resources:
5 Smart Ways To Use Your Home Equity
Home Equity Hazards
Mortgage Calculator

Speak to a mortgage expert

Here are a few mortgage advisors many of our agents work with to help their clients achieve financial success.

Angelo Ambrosecchia [CrossCountry Mortgage, LLC] | 570-468-7995
Carmen Caputo [Fidelity Deposit & Discount Bank] | 570-233-6313
Michael Coury [Fidelity Deposit & Discount Bank] | 570-200-5559
Charles Davis [My City Lending] | 570-947-2678
Barbara Garrett [Funding America Mortgage, LLC] | 570-561-7829
Julie Harvatine [Hemisphere Home Loans] | 570-357-4314

If you have any further questions, we would love to help you. Call us today at 570-585-6880.

* Greater Scranton Board of REALTORS® data 2021-2024; median sale price of residential homes