Gain Equity in your Home
Gaining equity in your home can benefit you, the homeowner, in many ways. Equity can be used to earn extra money when selling your home or can be used to take out a loan to do a home remodel or repairs. Understanding build equity in your home and learn about mortgage information and then applying those principles will benefit you and your family for years to come.
Instructions
1. The first thing you need to do is take a look at your mortgage. You can contact your mortgage provider and find out how much you owe on your loan. Then subtract that amount by how much you took the loan out for. For example: if you bought a 100,000 dollar home and you owe 80,000 then you have $20,000 of equity in your home. This means you could take out an additional $20,000 loan on your home for repairs or other uses. Or that you would make $20,000 if your house sold for $100,000. You would however be subject to fees and taxes so you would not get exactly $20,000. Now when you know this information then you are ready for step number two.
2. Now you need to talk to an appraiser. An appraiser can take a look at your home and tell you what the home is worth, what you could do to raise the value and if any additions you may want to add are going to help the value of your home. You can look in the phone book for reputable home appraisers or ask family members and friends if they can recommend one. It is a good idea, if available, to use the same appraiser who has looked at your home before, possibly the same one who appraised your home when you purchased it. That way they know what it looked like originally and can give you a good estimate.
3. Most appraises cost at least $250 and can go even higher. Make sure you have enough money to cover the cost before you call the appraiser. After you have had the appraiser look at your home, be sure and let him or her know what you would like to do with your home or how much equity you would like to build. For example: if you would like to add a deck, as the appraiser how much value it would add to your home. If the appraiser says it will add $10,000, that's great! That way you can try to limit your budget for the deck and if you can build one for say $6,000 then you will get your $6,000 back and an additional $4,000.
4. Other ways to add equity in your home that are simple is to: add new landscaping, new paint and hardware for cabinets, and decluttering your home. Also check with the neighbors. If they are new to area then they have possibly just added to your equity. Every time a home sells near your house it can add money to your pocket. Also see if any neighbors have added any new additions and what they may have gained from those additions.
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