Learn how leveraging your home equity can lead to financial freedom.
Are you one of the many homeowners who purchased a house in the last three years only to find that it no longer suits your needs? You’re not alone. Surprisingly, over 75% of homebuyers who made their purchases from 2020 until now share similar regrets. But there’s good news for those who bought three years ago–you’ve likely built up substantial equity:
1. The equity advantage. If you’re feeling trapped in your current home and have accumulated some consumer debt due to rising inflation, there’s a silver lining. Mortgage loan officers have been assisting homeowners in leveraging their equity to address these concerns. For some, this approach has helped them break free from homes they felt didn’t serve them and simultaneously pay off significant consumer debt, often exceeding $100,000.
2. The blended interest rate reality. It’s essential to recognize that while you may have secured a low-interest rate mortgage, the overall debt picture can be different. With the Federal Reserve continually increasing interest rates, especially for home equity loans and credit cards, the blended interest rate across all your debts might be much higher than your mortgage rate.
3. Improved cash flow. By capitalizing on your accumulated equity, you can potentially improve your cash flow. In some cases, the difference in monthly expenses between a new mortgage and existing consumer debt payments can be negligible, making a home change a financially sound decision.
4. Explore your options. If you’re feeling that your current home no longer suits your family’s needs and you’re dealing with consumer debt, it’s worth exploring your options. Selling your existing home and using the equity to pay down debt can lead to improved financial health.
Don’t let the misconception that you’re bound to your current home due to a low interest rate keep you from making a more suitable choice for your family. Call or email us or a trusted mortgage lender to discuss your unique situation. We’re here to help you make informed financial decisions and be your resource for achieving your homeownership goals.
