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Use These 3 Hacks to Build Equity in Your Home
If you’re looking to build equity in your home, you’ve come to the right place.
Home equity is often a game-changer for many homeowners. We see it every day. Everything from financing a child’s college education to making a big life purchase, your home’s equity can open new doors.
In this blog, we’re sharing three simple ways you can boost your home’s equity without breaking the bank.
Let’s dive in.
1. Rising Home Values
We’ve said it before—this is a tight market.
Home prices are higher than normal, thanks to low interest rates enticing homeowners to stay put by refinancing. All this has led to decreased home inventory, which means higher market prices for properties like yours.
In many ways, it’s been a seller’s paradise, and it’s no wonder. The ability to command top dollar while buyers compete over your property is a great spot to be in. Yet, there are serious advantages to not selling your home.
Namely, the equity you’re building simply by existing in such a unique housing market.
Think about it. Your home’s value has likely increased since the start of the pandemic, so the market is doing the equity building for you. Not a bad deal.
You may have additional home equity that you didn’t even know about. If this is the case, we recommend asking yourself the following:
- Do I plan to stay in my home for a long time? If so, it could make sense to tap into your home’s equity rather than sell and use it to buy a new home.
- Am I in need of funds right away? Selling your home to buying another one won’t free up funds. Even if you’re downsizing, remember that home prices are still high. The equity you’ve freed up in the current market may not take you as far.
What’s the bottom line here?
Let your circumstances dictate what you do with any newfound home equity. If you need to make a purchase, it may be wiser to refinance for cash rather than lose that equity in a pricey housing market.
Our loan officers are here to help you sort through your situation to find a result that will help you reach your goals. Reach out to one of us to begin finding answers to your questions.
2. Curb appeal
We all know that one house that makes us slow down whenever we drive by. Chances are, if, given the opportunity, you’d maybe even pay a little more to live there.
Upping your home’s curb appeal is a great way to build equity in your home while attracting loads of new buyers when the time comes to sell.
Flower boxes, a new coat of paint, and a decked-out porch go a long way in boosting your home’s value.
With temperatures rising, both in New England and in the housing market, now’s an ideal time to let your home strut its stuff.
Here’s are some quick & easy ways to get your home turning heads:
- Lighting. For under $100, you can buy stylish light fixtures at your local home improvement store. Flank new lighting by your door or line your walkway with footlights.
- Porch seating. A pair of rocking chairs with a nice side table gives your home an extra “room” in the warmer months.
- Flowers & flags. A basin with colorful flowers or plants makes your home more approachable. Don’t be afraid to add an American flag for an iconic “Main Street” look.
- Get seasonal. New England is fortunate to observe all four seasons. Go with a harvest look in the fall and a holiday look in the winter. Here’s where a seasonal wreath comes in handy!
The possibilities are endless when it comes to freshening up your home’s exterior.
Remember that anything you do will only help build your home’s equity for the better.
3. Renting out your home helps it work for you
How many people have you heard brag about how much they’re pulling in from listing their home on Airbnb, VBRO, or even a month-to-month tenant?
Extra income could be yours, especially in the Boston area, where rent prices are notoriously high. Renting out a room in your home for less than a studio apartment in the Boston area is a deal many would gladly take.
Here are just a few reasons to consider renting your space to build equity in your home:
- You could use the money to pay down your mortgage faster, which frees up more equity.
- Prove your home has income-generating potential, and it could be valued higher.
If you have a finished basement or even an extra room, you may want to investigate renting out your home. The benefits of doing so are limitless.
Having tenants isn’t for everyone, though. Take the time to speak with friends who have done this and get their take on what it was like having someone rent part of their home. Also, it would be best if you spoke with your family about any concerns they may have.
Ultimately, you may discover an entirely new financial opportunity while you build more home equity.
Not a bad deal at all.
Trust us to help you get more
We just shared with you three ways to build equity in your home—and that’s only the beginning.
Every one of us here at MBA Mortgage is committed to empowering you as a homeowner. We want you to live life on your terms. Building home equity allows you to do just that.
Contact us today and discover the endless possibilities waiting for you as a homeowner.