If you own a home in Denver Metro you have likely seen significant appreciation in your property since 2013. If you bought your home 4 years ago for $200,000.00 your home could be worth nearly $300,000, depending on your neighborhood's appreciation. While you may be comfortable not selling, there are a few ways to improve your financial portfolio utilizing your equity.
- Refinance to Eliminate PMI: If you currently have a FHA loan you can use the equity in your home to allow you to refinance to reduce/eliminate your monthly mortgage insurance. With a lower payment each month, you'll have more funds to do what you wish!
- Home Improvements: Projects that add value to your home can be an excellent investment. These include new items such as a roof, HVAC system, or fencing. Other common improvements are renovations: upgrading a kitchen or bathroom, expanding the home to add a new room or finishing a basement. You'll be able to enjoy these updates while you live in the home and these improvements will add value to your property when you're ready to sell.
- Pay off High Interest Debt: Some home owners prefer to take out a home equity loan to pay off any debt that currently carrying a high interest rate. A set payment and fixed interest rate will help you pay off your debt much faster than making the minimum payment on a credit card. You'll want to avoid accruing any additional debt to make this option truly work for you.
- Pay for College: College expenses continue to increase every year and regulations for student loans have been adjusted to allow for lower amounts of borrowing. Competitive interest rates can mean a home equity loan may be a good option to help subsidize the cost of college for your children.
- Line of Credit for Unexpected (or Expected) Life Events: Major life events, whether you need funds for a wedding, a new car or an unexpected medical expense or home repair bills can be good uses for a home equity loan. You can generally borrow more than other methods of financing and the rates are often lower.
Depending on your unique goals, it might make sense to obtain a home equity line of credit or a cash out refinance. If you want to discuss these options in a pressure free environment with a trusted lender, I'm be happy to connect you with some great lender referrals!