[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]One of the huge benefits of owning property is the home equity you can build. But with equity comes the temptation to dip into it if a large expense or possible investment arises. There are many strategic ways to use your equity without ruining any personal financial advances you have made. The most crucial step you need to take is to fully understand your options for tapping into that money and the associated risks.
Simply put, your home equity is the market value of your home relative to any loan balances remaining. There are two main ways to utilize this value. Getting a home equity loan provides you with a lump sum of money that you pay off in monthly installments, generally over five to 15 years. As with any loan, you will be required to pay interest on the amount, but it is usually a fixed rate. Choosing to use a line of credit instead offers similar benefits, but instead of receiving the money up front, you are given a pool you can draw from as needed. With this option, the lender provides a maximum borrowing limit and you can choose to use it or not until it is reached.
Before dipping into your home equity in, either way, it is important to understand the possible consequences. In both instances, your home is used as loan collateral. This means if you are unable to make payments on the loan for any reason, the lender can sell your property or take your home in foreclosure. Additionally, there will likely be closing costs and fees you have to pay in association with the loan.
About Windermere Real Estate
Southern California-based Windermere Homes & Estates is the fastest growing real estate brokerage in California in 2015, according to industry magazine First Tuesday Journal. In just over 5 years, co-owners Rich Johnson and Brian Gooding have opened 17 offices and have had over 600 agents join their team. Their newest achievement, 2016 Brokerage Achievement of Excellence, was awarded to them by the San Diego Association of Realtors® (SDAR). Windermere Homes & Estates was honored to be the first recipient of the new annual SDAR Award given for standard of ethics, commitment to compliance and high regards for running their business.
Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. with over 300 offices and 6,000 agents serving communities in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Mexico. Last year, Windermere closed over 86,000 sides for more than $31.7 billion in dollar volume. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation which funds services for low-income and homeless families. Since 1989, the Windermere Foundation has contributed more than 38 million dollars towards improving lives in the communities where we live and work. For more information, visit www.windermere.com.[/vc_column_text][/vc_column][/vc_row]