When most people think about a home, they think about safety, shelter, and various projects they’d like to undergo in order to make the house feel a little more like a home. There’s a feature that comes along with owning a home which most people don’t keep at the front of their minds, equity. Home equity is almost like a savings account that you have to keep and maintain, and if you’d like to focus on building your home’s equity, there are several ways to do it.
Make improvements to your home and the property it sits on. Keep in mind that not all improvements are equal. It’s important to focus on practical improvements if your aim is to build equity. Replace old doors with high-quality doors, implement smart technology to your home, reseal the windows and door frames. Things like this are practical improvements that will build equity.
Pay more than what’s required on your mortgage. When your mortgage payment is due, you know how much the lender asks for you to pay each month, but what if you added a little to it? Put extra money on your monthly payment either by adding $100-$200 onto your total each month or putting 1/12 more than you need on your payments so that you’ve at least paid one extra payment every single year.
If you’re buying a house and you want to build equity right away, a large down payment is a great step. If you pay at least 20% down on your home, you’ll start building equity right away, and you can save yourself the trouble of having to deal with mortgage insurance payments, thus saving you more money in the long run.
Speaking of money, if it’s at all possible in a household with two working parties, try to use one partner’s income solely for mortgage payments. This means that one partner will have to cover all of the remaining bills in the home while the other is responsible for spending their income on the mortgage. For some people, spending wisely makes this option a valid way to build equity.
There are several ways to build home equity, and the benefits can be extremely helpful for your financial future. This article has more tips on home equity to check out.
When the time is right to buy and sell your home, we’re here to help you with all your real estate needs! Call me, Laura Austin, at (281) 789-2911, or (936) 321-2977 or email me at Laura@RealtyTx.net. You can also visit me at my website for available listings and additional information.