What is Home Equity?

Dear Ali, 

One of the many benefits of owning your own home is it gives you the ability to build equity. But, do you know exactly what that means? 

Equity, the difference between what you owe on your mortgage and what your home is currently worth, can be converted into cash should the need arise. 

How Can You Increase Your Equity?

There are two main ways to improve your home's equity. First, as you pay down your mortgage, your total equity will rise. You could choose to make a bigger down payment, or pay more than your minimum mortgage payment each month.

Second, your equity increases if your home's value rises. Completing home renovations and boosting your curb appeal are two easy ways to do this!

How Can You Use Your Equity?

The equity that you build in your home can be used if you decide to move to a larger or more expensive property. Additionally, you could choose to tap your home's equity in order to pay for a major home renovation. 

Whether you're already a homeowner and you're curious about how your equity can work for you, or you're looking to invest in your financial future by purchasing a property, I'm here to help! Feel free to give me a call anytime. 

Sincerely, 

Anna Smith