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MANAGING HOME EQUITY

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For many, the equity that exists in a home or other real estate investments are their largest assets.  Depending on the location of the property and the period owned, equity can often be in the hundreds of thousands of dollars.

We believe this asset should be monitored and managed just like someone manages their 401k account or any other investment held.  However, it is often not managed effectively.

What do we mean by management?

  • An annual review should be done of the mortgage, the homeowners insurance policy and the property tax bill to determine if there are opportunities to save money by refinancing to a lower rate, ensuring that insurance has the appropriate coverage and is priced appropriately and make sure that the property is not over-valued by the taxing authorities.
  • Evaluate whether it is possible to refinance an existing 30-year mortgage to a 15 year or 20-year mortgage. Having a shorter mortgage term can save a substantial amount of money over the life of the mortgage.
  • For major purchases such as a home improvement project, educational expenses, medical needs and other one-time expenses, the ability to use home equity is often preferred versus other types of borrowing. This is primarily due to interest rates on mortgages being lower than any other type of borrowing.
  • Establishing a home equity line of credit when not currently needed to have access to funds that can be used in an emergency. Too often when a need arises, people are not able to tap into their home equity or borrow due to financial circumstances or other external factors.
  • For homeowners over 62, the use of a Reverse Mortgage can provide unique financial and lifestyle benefits regardless of whether there is a current mortgage or not.

Lastly, we provide a tool to all our clients that allow them to monitor their home values and provides insight into the changing value in their neighborhood.  It also provides information on current interest rates and has many other features.  If you are interested in having access to this service, just contact us and we will sign you up or you can sign up directly at https://hmbt.co/acJ8Ja.

Manage and protect your home equity.