Knowing Your Home’s Value for Extra Income

Dollar signIt’s still helpful to know your home’s value to earn extra income even if you have determined you’re not in the market to sell and won’t be in the market to sell for a long time. In the Carmel and Westfield real estate markets, which remain fairly steady through other major real estate booms and busts, homeowners may be able to count on their home’s value to  provide an extra source of income when needed.

The additional income gained from your home’s equity can go to pay for unexpected home maintenance or can be used for non-home related financial emergencies. By knowing your home’s current value, you can estimate how much equity you have to borrow against for extra cash. Several different options exist for gaining extra income through your mortgage.

One option is to refinance your mortgage and get cash. However, if your original interest rate is lower than the current interest rate, you’ll end up losing money because you’ll pay more monthly. I can help you find a reputable lender who can give you the latest interest rates and walk you through this process.

Another option is a Home Equity Line of Credit, also called a HELOC, which many lenders offer borrowers. The HELOC is essentially a second mortgage, but instead of cashing out, you get a predetermined line of credit available to you, similar to having a prepaid debit card. If you need the money, you have access to it and you only pay back and pay interest on the money you actually use. Both options require the homeowner to have a certain level of equity in the home, generally 20 to 25 percent. This means you must have paid down at least 20 to 25 percent of your mortgage loan.

If you need extra income, let me help you find your home’s current value so you can decide if your home’s equity can be a dependable source of extra cash.