3 Habits to Help You Grow Your Home Equity
Buying a home can be a big step up the ladder toward financial security. But after sharpening your money management skills on your way to mortgage, what can you do to make sure you stay on a positive path?
One smart place to focus your attention is on growing your home equity. And a simple way to increase your net worth begins with developing habits that shrink your mortgage and build equity with minimal effort.
- Find Easy Ways To Extra – The quickest way to shift your house from liability to asset is to pay off your mortgage sooner rather than later. Easier said than done, of course. However, there are some relatively painless ways to put a significant dent in that debt.
One popular trick is to split your monthly mortgage into two, bi-weekly payments. At the end of the year, you’ll have made 13 full monthly payments instead of just 12. Rounding up your mortgage payment to the closest even number is another simple route to extra payments. Or, consider committing your irregular income, such as tax refunds, cash gifts, or garage sale proceeds, to your mortgage. In any case, make sure the additional funds are paying down the principal.
2. Get Ahead by Maintaining
Home maintenance may seem like a chore, but taking a broader view of the benefits can add to your motivation as well as your equity. Spotting problems early saves money on repairs and also pays off when it comes time to sell.
Keeping your home properly maintained and up-to-date will attract buyers and avoid surprises during the inspection process. You’ll be more likely to get top dollar for the home and increase the equity you’re able to roll over to your next home.
- Stay Open to Opportunities
People often think of the mortgage process as a one-time occurrence, so it’s not surprising that it’s not top of mind when the paperwork is done. But staying aware of the mortgage market, even when you aren’t shopping for a new house, can have big benefits.
A significant drop in rates could mean it’s time to refinance. You could save on interest and lower your payment, or you could continue making the higher payment you’ve been accustomed to, putting the difference toward the principal of the loan. Or, if your income has increased since getting the mortgage, refinancing to a 15-year loan could accelerate your equity accumulation even more.
Find out how Open Mortgage can support your journey as a homeowner at OpenMortgage.com or by speaking to one of our representatives today.