Ways Your Home Equity Can Help You Reach Your Goals
Learning more about home equity is essential once you’ve owned a Kansas City home for several years. Are you unfamiliar with that term? Freddie Mac defines it like this:
“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”
Your home equity growth is based on two factors: paying down your home loan over time and Kansas City home values climbing. It’s accurate that KC home prices dipped slightly this past year. However, since then, they have rebounded and are still rising. Let’s examine why price growth is good news for Kansas City homeowners.
In the latest Equity Insights Report, Selma Hepp, Chief Economist at CoreLogic, explains:
“With price gains continuing to help homeowners build wealth, equity has reached a new high and regained losses that resulted from declines last year. And while the average U.S. homeowner gained over $20,000 in additional equity compared with the third quarter of 2022, some markets are seeing larger increases as price growth catches up.”
This figure is just for the last year. Want to understand how that number can add up over time? The report goes on to say that the average homeowner with a mortgage has more than $300,000 in equity! That much equity can have a significant impact.
How can you put your home equity to work for you? Here are just a few examples.
Buy a Home To Fit Your Needs
When a space no longer meets your needs, it might be time to move to a bigger home. Similarly, downsizing to a smaller one could be ideal if you find yourself with too much space. No matter your season of life and the constant change of needs, home equity can be put toward a down payment on a Kansas City home that fits your lifestyle.
Reinvest in Your Current Home
Not ready to move just yet? You can use the equity you have to improve your current home. Consider the long-term benefits specific upgrades can bring to your Kansas City home’s value. The Just Say Home Team is an invaluable resource to learn how to prioritize projects for the greatest return on your investment when you sell later.
Pursue Personal Ambitions
Home equity can also empower you to achieve life-long dreams. Do you want to invest in a new business venture? Have you been waiting for the right moment to retire? Or maybe you’re hoping to go back to school and need funding for your education? While equity shouldn’t be used for unnecessary spending, using it responsibly for something meaningful and impactful can make a difference in your life.
Understand Your Options to Avoid Foreclosure
The number of Kansas City foreclosure filings remains below average, but some homeowners still go into foreclosure each year. Are you in a difficult financial situation? Getting clear on your options can help. Home equity can serve as a cushion if you cannot make your mortgage payments on time.
Are you interested in learning how much equity you have in your Kansas City home? The Just Say Home real estate experts can give you a professional equity assessment report on how much you’ve built up over time. Then, one of these experienced KC agents will walk you through how to use it to help you reach your goals!