Buying a home is a dream come true for many people and the longer you live in it, the more opportunity you have to build equity. Equity is the difference between what the home’s market value is versus what you owe on it and with each house payment you make, the more equity you gain. Also as your home’s value starts to increase your equity also grows. If you’re looking for additional ways to improve equity in your home, here are a couple of ideas.
#1: Large down payment.
When you’re ready to buy a home, you can get a head start right at the get-go, by making a large down payment. Putting down 20% or more of the property’s value is a great way to not only add instant equity, but it can also keep your house payment lower and it will also allow you to avoid paying private mortgage insurance each month which doesn’t insure you but rather insures the lender against a possible loss.
#2: Shorter mortgage terms.
It’s very common for homeowners to take out 30-year loans on their home, but if you can swing refinancing your home to a 15-year mortgage, you will be able to pile on the equity and help pay off the loan quicker. Your monthly payments will be higher, but the payoff can be significant when your mortgage is paid off in half of the time. If you can’t swing the refinance to a 15-year mortgage, consider paying a little more on the principal of your loan with your payment each month or make one or two extra payments a year and apply it toward the principal. This can help you pay off the loan sooner and will help bolster equity over time.
#3: Home renovations.
There are some remodeling and home improvement projects that can help increase the value of your home and boost the equity. Replacing windows and doors, adding attic insulation, and completing a kitchen or bathroom remodel can all help with increased property value and greater home equity. There are certain home projects that do not add as much value. If you’re not sure, I’m glad to provide advice on which to-dos reap the most return.
If you’re ready to explore the option of buying or selling a home, contact me. I’ve been helping clients of all kinds for more than two decades. As a Realtor®, I can help you start the process and can provide tips along the way. I am glad to help you with the information you need to start your adventure.
Summer officially begins this week and the warm weather is here to welcome us into the new season. Now is the time that Pacific Northwesterners enjoy a break from the rain and can get outside to relax and enjoy the scenery. If you’re looking for some fun summer porch and patio decorating ideas that bring beauty and increase home value, here are some simple ideas to help you get started.
#1: Bring the inside outdoors.
Rugs and throw pillows can work wonders in creating a warm and inviting patio or porch space. They add color and ambiance. In addition, consider adding some umbrellas or curtained areas that can provide both privacy and shade from the scorching summer rays. In addition, if you have old furniture that you may have considered junk, it might be able to be given new life as a piece of outdoor furniture. For example, if you have an old dresser, paint it with a coat of exterior paint and put it to use as a place to pot outdoor flowers, or as a place to serve lemonade or cocktails during your next entertainment event.
#2: Lights, lights, and more lights.
Lighting makes all the difference. Flood lights are important to have for safety reasons, but when it comes to outdoor entertaining or relaxing in the evening warmth, ambient lighting with programmable battery-operated LED candles or twinkle lights are a great option.
#3: Add landscaping.
Landscaping is one of the easiest ways to add beauty to your outdoor space and it can also enhance the value of your home. Shrubs, trees, potted flowers, or fresh flowers that are planted along walkways are affordable ways to beautify your space and increase curb appeal. Group in odd numbers and mix and match colors and shapes to create some uniqueness.
#4: Upgrade windows and doors.
If your home’s doors or windows are old and outdated, they’re likely not energy efficient and could be wasting precious money each month due to leaking air in or out. Replacement windows and doors will add value and beauty in an instant! Not to mention, they can reduce noise and help maintain even temperatures throughout your home, no matter what the weather is doing outside.
I have more than two decades of experience as a Realtor® and can help provide tips on what you can do to help increase the value of your home! I love working with buyers and sellers around Clark County and am glad to help you with the information you need to start your adventure in either buying or selling a home.