Building Equity in Your Home
Our Habitat ReStores have the answers!
As soon as you move in, you'll probably start brainstorming ideas to spruce up your new home. Exploring new colors, patterns, and layouts can be exciting and freeing. These changes can not only upgrade your own living space but also build value in your home!
In celebration of Financial Planning Month, we are focusing on building home equity. Building equity in your home shouldn't break the bank, and many times it can be simpler than you think. Before we jump into building home equity with straightforward home upgrades, let's get started on the basics and learn what it is!
What is Home Equity?
"Home equity" is the portion of your property that you truly "own" compared to how much you have left to pay on it. To do a quick estimation of your home's equity, subtract your mortgage's remainder from your home's current value. So if your home is worth $500,000 and you have $100,000 left to pay on your mortgage, your home equity is $400,000; as your loan amount decreases, your equity increases.
There are two main ways to gain equity on the home you own; the first is paying down the home's principal balance. The second way is what we will focus on: increasing the market value, specifically through home renovations.
Simple Solutions That Go a Long Way
Any change you make can impact home equity positively or negatively. Make a note of how each upgrade, replacement, and construction will be affecting your home's value because it will ultimately impact the equity you are working toward in your home.
With that, here are simple ways to build home equity:
Aesthetic changes to your home can only go so far. More significant projects like building a fence, home additions, or a remodel are other ways to improve your home's resale value and drive up your ROI.
Whatever you're looking to do, the ReStores have you covered! We've got a deep selection of home improvement and building materials at our ReStores in Addison, Aurora, and Chicago Heights!
Stop by this week to see how you can improve your home's equity with the help of the ReStore!