There’s a Hot Real Estate Market. How to Take Advantage Without Selling Your Home

Do you own a house but have no desire to sell your home? With Zillow experts anticipating home values to grow 16.4% in 2022, homeowners can easily take advantage of this opportunity by leveraging their home’s equity.

Reduce Your Mortgage Payments

The PMI protects the lender when borrowers can no longer make their monthly mortgage payments. Therefore, homeowners can reduce their mortgage payments by getting rid of the PMI.

Leveraging Your Home Equity

Another benefit of rising home values is that homeowners can leverage their increased home equity and convert it into “cash” in the form of a Home Equity Line of Credit (HELOC), which is similar to a credit card.

Here are two ways you can reinvest the equity in your house:

Make Home Improvements

One way to use your HELOC is to finance home improvements to your property. With the right upgrades, it can further increase your home’s value over time.

Purchase an Investment Property

Another way to invest your home’s equity is using it to purchase an investment property. For non-owner occupied properties, lenders usually require an investor to put a 20% to 25% down payment.

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