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Tag Archives: home equity

How to Quickly Build Equity in Your Home

As a homeowner, you may want to build equity in your home sooner rather than later for a variety of reasons. For example, you might want to build equity if you didn’t make a down payment of 20% of the home’s value. If that’s the case, you may be stuck paying for private mortgage insurance until you reach 20% equity, like I am. But no matter the reason, there are several ways you can quickly build equity in your home. 1. Use Your Tax Refund Did you get a tax refund this year? If you did and you haven’t spent it yet, you could apply that money toward your home mortgage. By paying down the loan against it you can increase the equity in your home. 2. Increase Your Monthly Payment If you have extra room in your budget, use the money to make larger payments toward your outstanding home mortgage. Make sure the extra money you pay each month goes straight toward the principal on your loan. With some companies this is automatic, but with others you have to specify how you want the extra money you’re paying to be used. If you don’t specify, they may apply it toward ...

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Financial Benefits of Owning a Home

Financial Benefits of owning a home

The biggest issue in today’s market, even if you have a steady job and family, is whether buying or renting is the right move for your family. There are certainly benefits to both approaches, but unfortunately, not everyone is in the position to purchase their own home. That said, if you’re able to qualify for financing, there are numerous financial benefits of owning a home — some that you may not have considered. 1. Build home equity Unlike renting a home or apartment, you can build home equity when purchasing your own home. Equity is the difference between what you owe the mortgage company and your mortgage balance. Your mortgage balance decreases each month that you make a home loan payment to your lender. The longer you own the home and make payments, the less you’ll eventually owe the mortgage company; and as your house appreciates in value, you’ll gain equity. This is a major perk of owning a home. When you have equity, you can borrow against your home with home equity loans or home equity lines of credit. And if you refinance your house in the future, you can borrow cash against your equity. In addition, when you’re ready ...

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Would You Sell Your House If It Meant Debt Freedom?

debt freedom by selling our house

I swear being middle aged has sent me into considering all sorts of financial schemes to pay off debt and become financially independent. First, we were going to try and pay off our house within 5 years. Then, I felt an urge to sell everything and live in an Airstream trailer. Those ideas were probably a little ambitious or just plain nuts, but I can’t shake the seed of an idea that has grown into a real possibility as the housing market is starting to pick up where we live. We could actually sell our house and make enough money to pay off one of our rentals and buy a smaller home outright, which pretty much means debt freedom forever. Should we sell our house to pay off debt? Being the financial blogger that I am, any big decision needs a list of pros and cons, so here we go. Yes, You Should Sell That House! -We owe about $150,000 on our home mortgage. Our house appraised for $375,000 a couple of years ago.  With sales in the area, we could get our appraisal price, but to be conservative, I’d say that we could count on $350,000. That leaves $200,000 ...

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