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How To Build Home Equity

by Patricia Braithwaite 09/12/2018

Having equity in your home is an incredibly valuable thing. It allows you to borrow against your house and shows that the value of your investment is rising. Equity defined is the difference between your home’s value and the amount you still owe on the home. Equity allows you to move forward with other properties and sell your current one. 


As you pay down your mortgage, your equity increases. There is, however, always a risk of an equity slide where values drop a bit. There are a few ways that you can help your home’s equity value to increase faster.


Pay Towards The Principal


The first few years that you’re a homeowner, you’ll be paying a lot towards the interest and only a little towards the principal value of the loan. The quicker you pay down your home loan, the faster you’ll increase the equity of your home. Check your budget and see how much extra you may be able to pay. Then, talk with your lender to see if there are any pre-payment penalties. 


Complete Home Improvement Projects


You may not know that many home improvement projects can increase the value of your home substantially. There are many projects that you can complete in your home that won’t break the bank yet will give you a significant return. You can start simple, or think big. Some of the best home improvement projects that will add value to your home include:


  • Complete kitchen remodel
  • Replacing countertops
  • Refinishing cabinets
  • Installing new appliances
  • Replacing garage doors
  • Bathroom remodel
  • Putting on addition
  • Landscaping renovations


Any of these home improvement projects can add value to your home, bringing the equity value of the home up. Even if you’re not planning on taking out any equity in your home for some time, any improvement projects that you choose to do are beneficial for both you and how your home affects your finances.  


Increase The Amount Of Your Downpayment


You can increase the value of a home before you even buy it. If you put the traditional 20% down on a house, you’ll build equity a bit faster than if you put down a lower amount such as 3% or 5%. If you have already purchased your home, you can ask your lender to do what’s called a cash-in refinance. This type of refinance is where you bring cash to the refinancing closing table in order to lower the balance of your mortgage.   


About the Author

Author
Patricia Braithwaite

Braithwaite Realty Specialties Marketing and Sales in the NW Atlanta areas of Cobb and Paulding Counties specializing in both Commercial, Land and Residential properties as the Listing Agent and/or the Buyer's Agent While serving the real estate needs for the great people of NW Atlanta area for more than 20 years, Pat and her Assistants have met and helped many wonderful people. It has been their privilege to help others take their families, their estates or their employees to the next stage in life, obtaining their future dream.

As a Realtor and a Professional, Pat has used her targeted resources to help Buyers and Sellers make valued decisions and move forward with their Real Estate goals and needs. Beyond her many years of helping local Buyers and Sellers reach their dreams, she is a hard working Broker, highly involved with each Client and Sale.

As a highly ranked Rainmaker on Active Rain, a CDPE (Certified Distressed Property Expert) and an ePRO Specialist (National Association of Realtors Marketing Certification) and her active partnership with 11Alive - Marietta, she keeps her interests and knowledge sharp and current. Some of Pat’s professional Community accomplishments include Founding President of the Rotary Club of Dallas, 2015 Member of Rotary Club of East Cobb, Founding Board Member of the Paulding Education Foundation and the Foundation's original Scholarship Foundation Chairperson. In 2006 she was honored with the Atlanta Commercial Board's Multi-Million Dollar Achiever Award.

During the Recession, she turned her focus and abilities to match Buyer and Seller homeowner needs and together, they made major progress through hard work and success, reaching multi-million sales per year. Yes, the Buyers and Sellers worked hard through this process also… and through teamwork and targeted efforts, they succeeded. Now the market has recovered for both Residential and Commercial. Pat and her team reorganized and focused to help both markets achieve their goals for their exciting new future.

Pat loves utilizing her previous years of experience in the corporate world in Sales and Marketing to help her wonderful client base succeed with their goals today. She looks forward to meeting and helping you also.

-Braithwaite Realty