Three Ways to Use Home Equity

If you’re a homeowner, odds are the equity in your home has grown substantially over the past few years. Home prices skyrocketed all around. 

“Even though home prices are starting to normalize, the average homeowner with a mortgage has around $300,000 in equity right now,” says Lee Schilare, Sales Associate at ERA Justin Realty, “That’s the average. Some have less, but some have more. Much more.”

So, what should homeowners do with all that equity? Let it sit and accrue until it is time to sell? Or put it to other uses?

“As you weigh your options,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin, “It’s important that you survey your assets and understand how to best leverage them. An experienced agent can help with that.”

Here are some things to consider.

Buy a Home That Fits Your Needs

“If you don’t have enough space, it might be time to use your equity to move to a larger home,” says Schilare, “Or if you no longer need as much as you have, it may be time to downsize and use your equity in other ways.”

Renovate Your Current Space

If the size of your current space suits your needs but could use some updating, and you would rather not move… you could consider renovating. 

More than a third of homeowners tap their equity to reinvest in their house. “Renovating helps you get top dollar down the road when it is time to sell,” says Darby Metzger, “Particularly kitchens and baths.”  

Pursue Personal Goals

Home Equity can not only help you achieve your dream home, it can help make other dreams come true, too. Whether it be a new business, traveling or higher education, the equity you have earned in your home can go a long way towards achieving personal goals. 

Bottom Line

Home equity can be a game changer when used wisely. A knowledgeable real estate agent can help assess your options. Give Lee Schilare or any of the agents at ERA Justin a call at (201)-939-7500.