What is Equity?
Equity is the difference between the current value of your property and the amount you have left on your mortgage loan. You determine the amount of equity in your property by subtracting your current balance on your loan from the current appraised value of your property. The amount of equity increases as you pay your loan balance down or by the value of your property increasing over time.
How to use Equity
Using your equity to your advantage means receiving access to funds based on the amount of equity your property has incurred. The three ways you can do this are:
Some things you need to consider include:
Keep in mind that if you fail to make your payments on time, you put yourself at risk of losing your home. Carefully review your options if you are considering using your equity to your advantage.
If you have any questions contact my preferred loan officer that will have tons of information available to your advantage.
Information deemed reliable but not guaranteed. Information received from multiple third party sources not cited.