When you first bought your house, chances are you thought of it like everyone else does. This is a great investment. Just by doing nothing at all but living your life and watching the time pass your house is going to MAKE YOU MONEY! Well as the past has sometimes dictated, this is not an absolute in life. Maybe you took out a second mortgage to pay off your cars or perhaps put a kid through college and suddenly the powers that be decided your house isn’t worth what it once was. Just like any other kind of Investment, real estate has it’s risks. There are highs and lows and depending on the market, your house could gain equity or sometimes lose it. Generally speaking, back in the good ol’ days, people would buy houses and live in them for 30 years or even their entire lifetime, so of course equity worked for them. But in this day and age, that’s a rare thing. In the past, a person spent their lifetime in two houses…the one they grew up in and then the one they bought after marriage for their own new family. That was it. Modern day times are very, very different. Now everyone wants more. The dream of owning your own home has come and gone…now it’s a dream of owning your own “Homes” Plural. Meaning, yeah, let’s face it, people do seem to move around a lot. And that eats up your equity, your savings and your investment dollars as each time you buy and sell you are taking a percentage out to move onto the next biggest and best house!
Getting the most from you equity is an important part of home ownership. You want your investment to make money and you want to be okay for the future.
Here are some tips on getting the most from you equity:
- Choose your loan wisely
- Calculate your own repayment schedule
- Limit your use of equity
- Use equity to cut your interest payments
For some more great equity advise, visit http://www.interest.com/home-equity/news/4-smart-moves-for-using-home-equity/