By the 21X team
Every day we hear more and more about the frenzy of the Arizona real estate market. The cause is a perfect storm between low interest rates, well-qualified buyers and low stocks. The result is a perfect opportunity for sellers to cash in on their home equity.
In Maricopa, most owners see $ 50,000 to $ 100,000 or more in equity. Like any investment, the equity in your home is only valuable if you have a way to use it. So here are five things to do with your home equity.
Cash and sell. The most obvious thing to do with your capital is to cash it out. Selling your home is the easiest thing to do because it allows you to cash in and go. This option is best for those who are retiring or looking to relocate to a new location. While walking away with $ 50,000 to $ 100,000 sounds like a great idea, you’ll still want to have a plan in place before you think about selling.
Collect and repay debt. Another option is to sell and take advantage of an interest-free option to pay off the debt. You can use the equity in your home and funnel it to pay off your vehicle, medical bills, credit card debt, and more. This is a great option for anyone looking to consolidate their monthly payments. For many, equity will far outweigh the monthly payments leaving a surplus so they can eventually buy another home.
Cash in and renovate. Could your home use indoor cooling? If so, cash in and renovate may be the option for you. Instead of dreaming about granite countertops or that luxurious tub, refinance and make it a reality. This is a great option for those who are happy with the location and general layout of their home, but would prefer some upgrades. Cashing in doesn’t always mean you have to move and modernizing your home could help you fall in love with it again!
Cash in and pay for college. Let’s face it, university is expensive! As proud of your child as you are, you are certainly not thrilled with the price that has to be paid for a college education. By cashing in and refinancing your home, you could help your child go to school the best way, without any debt. According to consumer reports, student loans are harder to manage a mortgage. In addition, student loan interest rates have traditionally been higher than mortgage rates. Prepare your child for success without breaking the bank by leveraging your capital to pay for their education.
Cash in and wait. What you do with your equity is your choice. All of the above options are great ways to use your equity, the only thing you shouldn’t do is pass up the opportunity. While the market is hot right now, it might not be a year from now. Take advantage of this unprecedented opportunity now with some of the highest real estate values in decades. If you don’t know what to do with your equity, one option for you may be to just cash in and wait.
If you’re thinking about selling your home, or if you’re interested in what your equity can do for you, don’t hesitate to contact the 21X team today! Our real estate experts are ready to guide you in any type of real estate transaction. You have your own real estate goals, we’re here to help you achieve them.