Are You Gambling With Your Equity? Read This And Find Out!
UNITED STATES - Sitting on large amounts of equity and not selling or refinancing your property is the equivalent to being up $100,000 at a Blackjack table and refusing to get up from the table. Even more so for those reaching and/or in retirement age.
The truth is that the market cycles take years to go from high, back to a low, and then all the way back up to where they currently sit now.
...meaning a person that owns a property worth 600,000 now that waits and misses the chance to lock in that equity built over the years might have to wait until they are 15-20 years older to have the chance to CASH OUT again.
Let's face it. The economic downturn happened around 10 years ago. ...and with housing prices hovering at highs there hasn't been this type of opportunity to realize you gains in a very long time.
However, homeowners seem to continue to wait it out in hopes that they can sell for a higher amount or take possibly take more out in the form of a cash-out refinance.
This might be a mistake because each month interest rates are climbing which lowers the amount of home you can qualify for as your payments will have a larger portion going to interest and not the principle of the loan.
Not if, but when the market does turn it will be much harder to sell your home, refinance your home, or borrow funds to purchase a new home.
Here are a few options for Homeowners with built-up home equity.
- Cash out your gains by selling your home and buying a new one to either downsize or upsize your living space.
- Refinance your home and do home improvements so you can sell for a higher amount while the market is still high.
- Refinance to pay off credit card debts at a lower interest rate than the cards set at and take available cash out to purchase another home to rent out. Taking advantage of the ability to rent out to vacationers or just to do with as you please.
- Refinance with a reverse mortgage for those over 62 to lock in the high value now which can generate usable income from that built up equity without the risk of the values dropping.