Equity Take Outs

Firstly, let’s discuss briefly what equity is.  Equity is the difference between the value of your home, and the balance that you have left owing on your home.  (VALUE – BALANCE = EQUITY)

The power in equity gains sometimes means simply living in your home over a period of time.  It’s like making money in your sleep.  The longer you’re in your home, the more growth you get through equity and time.  (Ownership X time = Equity Gains).  Yes, there are times that equity growth is faster than other times, but historically since 1981, on average, homes have experienced equity gains at a 5% rate…again, this is an average.  There are peaks and valleys just like any other investment.

What if you want to access this equity?  How do you go about it?  Better yet, what is involved with taking equity out of your home?  There are certain “do’s and don’ts” when it comes to thinking about accessing your equity.  Firstly, ask yourself what you need the money for.  When you access equity in your home, sometimes you are interrupting the current mortgage.  If this happens, you may be susceptible to payout penalties with your current mortgage provider.  Different factors about your personal mortgage will dictate different mortgage products when taking equity out of your home.  You are unique, and so is your financial situation.  Your mortgage should be custom fit for your needs.

A conversation with us FIRST will point you in the right direction.  Talk to us when trying to decide which way to go…it could save you plenty in the long run!

A friendly voice, knowledgeable advice – a move in the RIGHT direction!