Home values continue to rise. Many people use their home equity in order to get a bit more financial security. The home equity line of credit can have many different benefits for you. From home improvement projects to a much-needed vacation, you can get the funds that you need for whatever you wish. Turn to your home equity with some careful thought, however. You could end up owing more than your home is worth, which defeats the purpose of tapping into your home equity to begin with. 

Make Your Decision Smart

Your home equity can be a good thing to tap in to if you’re not planning on spending like crazy. Maybe you just want a little extra cash on hand for emergencies. You’ll be prepared for anything unexpected. This could be a smarter decision than just blowing a bunch of money on a vacation, for example. 

Some smart things that you can use your home equity for include:

  • Home renovations
  • Emergency funds
  • College education funds
  • Cash advance

These ideas are investments that can help you to achieve other goals. You should be sure that you’re able to pay the money back. These projects or financial endeavors are much more suited to smart spending than just randomly spending money, buying a car, or other things that will put you in serious debt.

Home Equity Fluctuates


As the market changes, the amount of home equity that you’ll have to tap into does as well. The state of the housing market can actually dictate to you how much money you’ll be able to get. If the market isn’t good, you could end up in the negative financially, so do your research. 

How To Get Your Home Equity

There are a few ways that you can draw from your home’s equity. The first rule that you should understand is that you cannot borrow more than 80% of what your home is worth. Take a full remortgage your home, giving you the full 80% amount that your home is worth in order to take a lump sum. Alternatively, you can take a cash-out refinance where you set the amount of money you’d like to take out of your home’s equity as you refinance the home. You can also take out what’s called a “home equity line of credit,” which allows you to use the amount of your home’s worth as a credit card of sorts. You borrow money as you need it.     

The biggest issue with refinancing is that of planning. It’s important to know why you’re refinancing and what you’re planning on doing with the money. Used wisely, home equity can really be a great financial tool.

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Our homes are special from the first time we enter. That’s why we spend our precious time and money caring for our dwellings when bad weather threatens damage.

Spring Windstorms

For homeowners, windstorms are often unassuming. We all know to watch for snow or rain, but high winds can cause significant home damage.

While we can’t control the wind, there are some proactive measures we can take. Refasten any loosely hanging shingles or gutters. Check the yard for unsecured items that could become projectiles in high winds. Finally, remove branches or whole trees that are within falling distance of the house.

Winter Snowstorms

During the winter, one of the biggest problems for homes involves the weight of snow. As mentioned above, make sure to trim any branches hanging over the house. The last thing you need is a heavy branch falling on your roof.

Before it gets too cold, you should also change filters and perform necessary maintenance on your home heating devices.

Spring/Summer Floods

Over the past decade, floods have happened more frequently due to climate change. If you live in a minor floodplain, now is the time for a plan of action.

You may want to consider building trenches and water runoff channels into your yard. Many homeowners also build decorative concrete walls or other barriers around their homes. Lastly, consider investing in a sump pump to remove internal flooding.

Hurricanes

Hurricanes are the most destructive of storms; however, preparation mirrors earlier examples. Preparing for hurricanes means preparing for the worst possible winds and floods. Make sure to reinforce any home appendages, barricade doors and windows, and build water barriers.

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