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Relocating to a new home can be exciting and challenging, especially when it comes to calculating your upcoming costs. One of the best tools to facilitate the move into your next home is equity. Understanding and leveraging your home equity can turn your dream of a new home into a reality!
What is Equity?
Equity is the difference between your home’s market value and the balance of your mortgage. For example, if your home is worth $300,000 and you owe $150,000, you have $150,000 in equity. This equity grows as you pay down your mortgage and, thanks to the rapid appreciation we have seen over the past few years, homeowners most likely have more equity in their homes than they might initially realize!
How Equity Can Help Your Move 
Down Payment for Your New Home – After selling your current house, you’ll be able to use your equity to make a substantial down payment on a new home, securing better mortgage terms and lower monthly payments. You’ll also have the option of using your equity for other moving expenses, such as hiring movers and setting up utilities.
Home Improvements and Staging – Use equity to fund upgrades and increase your home’s market value, making it more appealing to buyers. Remember- higher ticket price on your renovation doesn’t always mean a higher return on investment! Consider using your equity to take care of multiple smaller projects over one large project.
Debt Consolidation – Consolidate high-interest debt using equity, improving your financial stability and making it easier to qualify for a new mortgage.
Equity is a valuable asset that can ease the financial burden of moving, and many people have more equity in their home than they may currently realize! By effectively leveraging your home equity, you can make a smooth transition to your new home, reduce financial stress, and set yourself up for future success. Take a look at what your current equity can do for you, and talk to a Shorewest team member when you’re ready to buy your next home.
Tags: Buying, buying a home, Equity, Real Estate, real estate advice, Selling
Categories: Home Buying, Home Selling, Homeowner, Mortgage, Real Estate Tips, Shorewest Tips
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