Your home is more than your place of refuge, it is also more than likely the biggest investment you’ll ever have. When you have equity in your home, you have a solid investment in the future. We just want to take a moment to define home equity, for those who may think they know what it is but aren’t too sure. Simply put, home equity is the difference between your home’s market value and how much you owe on your mortgage. In a typical market, your home’s equity increases with each payment you make.
Banks offer home equity loans to help people who have built up significant equity in their home so that they can make necessary home repairs. When it comes to making home repairs, you want to be sure that you make back the money you invest. Sometimes the improvements you make to your home add to the equity in your home and sometimes, unfortunately, they don’t.
Below are a few improvements that you may make to your home and increase its equity:
- Upgrade your front entry. It turns out that the home improvement project that gives you 100% return on your investment is replacing your front door with a brand new steel door. I guess you really can’t put a price tag on a first impression!
- Replace your garage doors. Speaking of entrances and exits, replacing your garage doors is also a home upgrade that will give you a great return on your investment.
- Fresh Vinyl Siding. When people are purchasing a home, their first impression is very important. A home that has new, durable, vinyl siding gives the impression of a home that is well maintained and cared for which makes this home improvement a good bang for your buck.
- Minor Kitchen Remodels. When it comes to kitchens, evidence shows that investing too much in a remodel could actually hurt you. While I am sure you will enjoy every minute in your brand new kitchen, you should be aware that may not make your money back when it comes time to sell.
Looking to take advantage of your home’s equity? WVFSL has some great options when it comes to Home Equity Lines of Credit. Find out more here.