Your home is probably the most valuable asset you will ever have. Whether you own your home or have investment property, real estate is typically a good investment because property values historically increase over time. From the moment you buy a house, you are building equity in a home—equity that can be converted into cash.
If you are a homeowner, your property probably has untapped value that you can turn into cash. Most people who purchase a home have home equity since the value of the property is likely more than the outstanding mortgage. Home equity represents potential cash that you can use in a variety of ways, whether it is for remodeling or to pay off other debt such as credit cards or student loans. However, if you want to tap into your home equity, what’s the best way to do it?
For most families, buying a home will be the biggest financial commitment they ever make. Owning your home offers a number of advantages. In addition to having pride in your home ownership, you receive a number of tax advantages. Most importantly, you have equity in your home, which can be used for other purposes.