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Posts Tagged ‘Home Equity’

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How to Smartly Leverage Your Home Equity

How to Smartly Leverage Your Home EquitySo you’ve been a homeowner for some time. You’ve been faithfully paying off your mortgage for years, and you have a fair bit of equity built up in your home – and that makes you proud. But now, you’re wondering what good equity is if you’re not using it.

How do you actually use home equity? And how do you leverage it to get a high return for low risk? Here are just a few options you may want to consider if you’re looking for something to do with your equity.

Use A Home Equity Loan Or HELOC To Pay Off High-Interest Debt

If you have a certain amount of money invested in your home, you can borrow against that investment by taking out a home equity loan or a Home Equity Line of Credit (HELOC). A home equity loan is ideal for borrowing a large amount of money for a specific purpose, whereas a HELOC works much the same way a credit card does – you can use credit as needed, then pay back what you owe. And if you have a lot of high-interest debt, one of these vehicles could be a great way to pay off your creditors – while it may seem like borrowing from Peter to pay Paul, you actually save thousands of dollars in interest rates by paying off high-interest debt using a lower-interest HELOC or home equity loan.

Buy An Investment Property With A Home Equity Loan

If you’ve been looking to enter the real estate investment market but haven’t had the liquid funds for a deposit, leveraging your home equity in the form of a loan can get you into the landlord game quickly and easily. This is a smart move because while you are taking on more debt, you’re doing so in order to create a new income stream. Ideally, you’ll want to buy a duplex or a home with a granny suite so that you can maximize your investment by renting out more than one dwelling space.

Downsize To A Smaller House And Invest The Difference

Perhaps you’re living in a large house that has seen its value appreciate in recent years, and you’re looking to move in the near future. Selling your large home and moving into a smaller, less expensive home is a great way to simply turn your home’s equity into cash – cash that you can invest.

Leveraging your home equity can be a smart move if it’s done with a larger goal and a solid strategy in mind. But when done irresponsibly, taking equity out of your home can have severe consequences. Talk to your local mortgage professional today to learn more about smart options for leveraging home equity.

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Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes


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Spring DIY Projects: How to Build a Treehouse That the Kids Will Love

Spring DIY Projects: How to Build a Treehouse That the Kids Will Love If you have children, no home is complete without a treehouse. Besides the fact that treehouses provide kids with hours of entertainment, they can also confer ancillary benefits that are hard to quantify. For starters, treehouses can improve property values by boosting curb appeal. When building any type of treehouse, keep the following tips in mind.

Location, Location, Location

Before you head off to Home Depot and get all the necessary supplies, you need to spend some serious time storyboarding the build process. Pick a tree with low, sprawling branches such as an oak or a maple. Furthermore, consider issues like wind, shade and privacy before you start to nail up supports.

Choose Your Materials Wisely

A treehouse built with subpar materials will fall short in the longevity department and disappoint the kids. Pick out stout oak 4×4 posts for the structural elements and top them off with pressure-treated pine for the floors and railings. Use quality plywood for the interior walls and seal it to avoid rot.

Make Multi-Use Your Mantra

Treehouses that are simply shacks suspended above ground will quickly bore youngsters no matter how well-built they may be. Incorporate elements such as swings, rope ladders and even zip-lines to get more from your treehouse. As long as you’re putting in the effort, you might as well add all of the bells and whistles.

Bake Safety Into the Recipe

You don’t want the kids to get hurt when they’re frolicking among the branches. Make sure to bolt handles and permanent rails into the truck so that adolescents are less likely to slip and fall. If you want to go all out, add a few safety nets around the edges.

Heed Aesthetics When Designing

An unadorned treehouse quickly turns into an eyesore over time as it’s battered by the elements. Shingle the roof and paint the exterior walls so that they match your home. Kids will naturally gravitate towards a treehouse that looks appealing and your neighbors won’t complain about a shoddy structure in your weeping willow.

It’s More Than a Treehouse

While many young kids will no doubt love a full-featured treehouse, it’s usually the improvement in home value that will appeal to adults.

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Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes


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Three Hot Renovations That Will Boost Your Home’s Value Without Breaking the Bank

Three Hot Renovations That Will Boost Your Home's Value Without Breaking the BankAre you feeling the “renovation itch” or perhaps looking for a fun project that you can take on which will provide you with a return on your investment? There are numerous home upgrades and renovations that can add value to a home without costing a large sum of money to complete.

Let’s take a look at three popular home renovations that can increase your home equity without draining your bank account.

Paint Your Home Inside and Out

Painting the interior or exterior of your home costs very little when compared to how much it can freshen up your home’s appearance and increase its value. Painting is also an excellent time to get rid of any old wallpaper or other decor touches that are a little dated. Spend some time browsing through Pinterest or through home improvement websites in order to choose a color palette that is warm and inviting without being too bold. Remember, if the goal is to increase your home’s value you’ll need to paint using colors that buyers will find attractive.

Upgrading Your Windows

If your local environment is cold or wet during parts of the year you may find that upgrading your windows improves your home’s appearance and provides you with some additional savings in the form of reduced energy costs. Look for windows that are energy-efficient and that are guaranteed to eliminate drafts. Depending on the area of the country that you reside in, you may find that windows that are insulated with vinyl or aluminum are your best bet.

Finishing Your Basement into a Suite

If you have an unfinished basement which has a lot of space and running water you may want to consider finishing it in to a full basement suite. Some buyers will be enticed by the additional rental income that can come from a suite, while others will be excited at the opportunity to provide an older child or family member with their own suite inside of the same home.

You’ll find that investing a little time and money in your home now can pay huge dividends later when it’s time to sell and move on.

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Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes


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4 Important Questions To Ask Before Refinancing Your Mortgage

4 Important Questions To Ask Before Refinancing Your Mortgage

So you are thinking of refinancing? Well you are in luck because I have 4 quick and important questions you should ask yourself before doing so.

1) Do I Have Enough Equity To Get A Mortgage?

To get a conventional loan, you will usually need to have at least 20 percent equity. This means that your house will have to be worth at least $250,000 to get a $200,000 loan.

If you have less equity, you could end up having to pay for private mortgage insurance, which can easily add $100 or more to your monthly payment.

2) How’s My Credit?

Most lenders will look at your credit score as a part of determining whether or not to make you a loan. With conventional lenders, your rate will depend on your score and the higher it is, the lower your payment will be.

Other lenders, like the FHA and VA programs have an all or nothing rule. If you qualify, your rate won’t be based on your credit, but if your score is too low, you won’t be able to get any loan. Generally, 620 credit scores are the lowest that will qualify you for any loan.

3) What Do I Want To Accomplish?

Mortgages typically offer a choice as to their term. While the 30-year loan is the most popular, shorter term mortgages save you money since you pay less interest over their lives. They also get you out of debt sooner, at least as regards your house.

The drawback is that they carry higher payments since you pay off more principal every month. This can make them less affordable for some borrowers, generally, you’ll need to keep your current house and loan for anywhere from three to six years to break even on the costs of refinancing.

4) How’s My Current Loan?

If you have an adjustable rate mortgage, you may want to switch to a fixed rate mortgage simply for the additional security it offers you. On the other hand, if you are planning to move relatively soon, your current mortgage could be a better deal whehter it’s fixed- or adjustable-rate.

When trying to decide what to do, compare the cost of refinancing with what it would cost you in additional interest to hold on to your existing loan. While the breakdown is different for every borrower, generally, you’ll need to keep your current house and loan for anywhere from three to six years to break even on the costs of refinancing.

Deciding what to do with your mortgage can be complicated. Working with a qualified loan broker that can consider every angle with you can help you to make a better decision.

Related Articles:

Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes