Your equity can be a powerful tool to help you reach your homeownership goals. Your equity may have grown significantly in the last year. Here are four ways you can make the most of your growing equity.
1. You Can Use Your Equity to Buy a Home that Meets Your Needs
You might find that you don’t have enough space to live in, and it is time to move. You might have too many square feet and want something smaller. Whatever your situation, you can use your equity to purchase a home that suits your needs. A larger home may offer more space for loved ones or remote workers. On the other hand, downsizing can help you save time and money.
2. Move to the Place of Your Dreams
It may be time to move to a different area if the size of your house is not a problem but your current location is. Perhaps you love to vacation in the mountains, on the beach or anywhere else, and want to live there all year. Perhaps the distance between your family and friends is too great and you want to bridge it. Whatever the reason, your home equity could help you move to the place that you truly want.
3. Start a New Business
You can also use equity to fund a new venture if you aren’t ready to buy a home. Although it is not recommended for homeowners to use their equity for unnecessary expenditures, using your equity to invest in a business you are passionate about could help grow your nest egg.
4. Spend money on education
It doesn’t matter if you are a parent or a friend who is preparing for college, or if you plan to return to school, the idea of paying for higher education can seem daunting. You can use a portion or all of your equity to help pay for higher education.
You can use your equity to help you reach your goals. Talk to a trusted advisor to find out how much equity your home has and start planning your next move.