One often wonders about where is all the money going that one is paying through mortgage payments, month after month. Wouldn't it be nice to know where one stands in terms of how much equity is there in the house? That built up equity can be used in so many different ways... It can be used to take out a HELOC to renovate the house.. or why not use it to make an investment... An investment property perhaps?
These are the questions Home Owners have but never the answers.. Why? Sometimes there is lack of time to ask for more information, or simply one doesn't know who to ask. It can be an overwhelming process...
If you are one of those people who have a home, have owned it for years but don't know how to leverage that equity, here is what you can do.
Talk to your Real Estate Agent to understand current market conditions. Which market is appreciating at a better pace? What type of property is most suited to the Investment that you can afford/manage. Being a Landlord/Investor comes with it's own responsibilties.. What should you be prepared for.
Would you consider utilizing that equity to transition to a different House/Property? Would you like to if opportunity presents itself?
Discuss with your Mortgage Broker about how much equity do you have and how much is avaialble to you in case you were to ask for it. (Getting a HELOC depends on various factors. Due dilligence is a must in these matters)
Once you have all the information on hand, then you can proceed with how you would like to leverage that equity that is sitting in your house; building up for sure, but not multiplying.
Give it some thought !
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