With your home being a power asset, now may be the time to build on the strength of that asset.
What is an asset?
As your home ages, it can increase in value or appreciate. This is different than other assets like vehicles or campers, which tend to depreciate. One way to help increase your home’s value is by completing home improvements and upgrades. When it comes time to sell your home, many buyers expect certain rooms to be upgraded. These areas generally include kitchens, bathrooms, and family rooms. As fun as it can be to improve these areas, having the funds to complete them can be difficult to come by.
One option that you could utilize is your home itself. You may be able to use the equity that you’ve built in your home to borrow against. Since your home is such a powerful asset, it can offer you options that other funding tools may not. Financing this way may allow you to use longer term fixed-rate options. You might decide to open up a Home Equity Line of Credit (HELOC) for example, allowing you to access the money with more flexibility. With a HELOC, you have a revolving line of credit that allows you to borrow the funds when you need them, up to your credit limit.
Oftentimes, borrowing against your home offers lower interest rates and may even be tax deductible.* You will need to consult your tax advisor to know for sure, but all of these options could become potential ways to build on to or improve your home.
So, if you’ve got the itch to do a full renovation or a simple upgrade, it may be time to explore how the equity in your home can help make that possible!
*SouthPoint Home Mortgage does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and it not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.