Building equity in your home

Given the booming real estate market I figured it would be best we talk about a few ways to help build equity in your home. For most of us our home will be the biggest investment you will make in your life. Personally I know I rest easier knowing that with each year of mortgage payments spent it is going towards a safe investment. Here are 4 quick tips in helping to know your home is building that equity you have always hoped for.

1. Make Bi- weekly mortgage payments. With rates on the rise it may be wise to start paying more on your monthly mortgage. Whether it be paying twice a month or even paying $200 more a month it makes a huge difference over the term of your loan. If you look at the interest you will pay over the term of the loan you would quickly understand paying your home off sooner is all the better.

2. Cut your loan term in half. 30 year fixed loans are the most standard conventional loans but there are more options out there. A 15 year mortgage may be larger monthly payments but again the fewer years of paying interest the better you will be.

3. Making home improvements. A lot of people I have worked with today are buying homes just for this reason. Buying an underpriced home in this market that needs some sprucing can pull you in huge equity. Updating kitchens, bathrooms, and making spaces more open concept can all add to the equity you have in your home.

4. Sit back and relax. We have all been spoiled over the past 5 years home prices have consistently risen year after year for residential homes. Homes will continue to rise but most likely at a slower pace than we have been used to. If your home means more to you than just an investment and you plan on being around there for a long time then sitting back and relaxing could be just for you. Taking care of regular maintenance and updating small items could be all you need to do to secure your investment for the long term.

I wish you all the best of luck in securing the most equity possible in your new or current home. Like always make sure you consult with a local real estate agent to help show you what items in your home can yield you the biggest returns long term.