If you’re a homeowner with home equity and want to use it to your advantage, it’s important to know the smartest ways you can use it. You could borrow against the value of your home for a number of important projects without impeding your long-term financial goals.
Here are four ways you can use your home equity.
If you have multiple credit cards or other debts you may be able to substantially lower your overall monthly payments by using your home equity.
Using home equity to consolidate your debts may be a smart option to consider, especially if your credit card interest rates are high.
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Another way you can use your home equity is by investing in a second property. Buying a rental home is an investment than can earn you more money in the long run.
You can use the equity to pay for the down payment that will ideally return enough cash to cover the mortgage, property taxes and other fees that come along with it.
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The rise of college tuition and fees has left many families wondering how they can afford college. The average tuition at a four-year public university reached $10,230 nationally for the 2018-19 school year, but that cost rises to $21,370 per year per year when you include room and board.
Paying for a higher education can be expensive, but families with home equity have a unique advantage by being able to tap into their equity to help fund tuition costs. You can also use the equity to help your child pay off their student loan debt after graduation.
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Using equity loan to cover home improvements can be a great way to increase the value of your property over time. There are time where an upgrade is crucial if you need to sell your home one day or earn money back on your investment.
If you use the money to make upgrades or repairs that are needed, such as leaky faucets or plumbing, this will improve the value, and may be a financially savvy move.
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