Real estate prices are continuing to increase, which means that it is the perfect time to build home equity. Your investment in a real estate property is a great way to protect your finances while offering a comfortable, beautiful home to share with your family. But, there are a few things that you need to do proactively if you want to avoid the common mistakes that might impact property value.
As a homeowner, you should follow these tips to build your equity:
Pay Attention to Market Trends
Let your home appreciate by riding the trends in the market. Since the prices are increasing right now, it means that you are gaining appreciation over time. Owning a home is an excellent choice so that you can take advantage of the rising industry pricings over the years. Many times, it’s like buying stock and watching the value increase with time. So, if you don’t already own a home, then it makes sense to buy as soon as possible.
Increase Your Down Payment
When you are buying the property, the amount that you put down for the financing will impact the financing. Talk to your lender to see how the numbers work out with your down payment options. A larger amount down will decrease the loan size, which in turn decreases the overall amount of interest that is paid. You can pay off the home quickly by minimizing the interest expenses. Then, the extra amount will be pure equity when it comes time to sell.
Pay Down Your Mortgage
After you move into the home, look for opportunities to pay down the mortgage balance whenever possible. Use financial increases to pay towards the mortgage and decrease interest expenses. For example, tax returns, family gifts, and work bonuses are all examples of unexpected financial windfalls that can be used to improve your home equity. Sometimes, lenders can adjust your monthly payments if you pay large lump sums towards the mortgage.
Increase the Frequency of Payments
Instead of assuming that you should make 12 monthly payments a year, look at options to speed up the payment schedule. Adding one extra mortgage payment per year can reduce your payoff calendar by as much as five or six years. Biweekly payments speed up the payment cycle even more, making it possible to pay off a 30-year mortgage in just 15 years.
Improve the Quality of the Property
Consider the option to invest in home renovations so that your property is move-in ready when it is time to sell. The best solution is to talk to an experienced real estate agent about comparable properties in the area. Then, you can choose the home features that need to be updated, helping to maximize the value of your property. Make sure that you understand the potential ROI (Return On Investment) before putting money into these renovations.
If you need helping maximizing your property value, then it is time to talk to the leading real estate team in the greater Atlanta area: DUFFY Realty. We offer excellent results and a fast turnaround time when you are ready to sell your home: (678) 318-1700
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