Home equity on a property can be a useful tool, which if used properly can be expertly utilized when it comes to investing, paying down debt, renovations or other financial endeavours. There’s a few avenues to go down, and here’s a brief outline to get you started if you’re thinking of turning equity into a future investment.
A Home Equity Line of Credit, a secure line of credit against your property, which requires and appraisal and is dependant on value, is a viable route to take.
You can also do a partial refinance on your property, however once again this is dependent on the value of its home, how much it’s increased in value since purchase, and many other factors.
There’s also a full mortgage refinance, which means that you are looking to take out equity by breaking the current mortgage and increasing its current balance by the amount you are taking out.
All of these options are viable strategies if you’re serious about using your property’s equity for further financial gain. However remember such financial decisions must only be made after careful planning, consideration, and not as a knee-jerk reaction to a fluctuating market or quick financial fix.