How to Take Advantage of Your Home’s Equity

Property values have increased 13.2 percent in the last year, according to a report by Zillow earlier this year, with similar growth expected to continue into 2022. Increased property values coupled with interest rates still near historic lows means you may be able to refinance your mortgage and save money on your monthly payment, shorten the term of your loan or gain access to your home’s equity with a cash-out refinance.

With a cash-out refinance from Colonial, you may be able to gain access to cash from your home’s equity to use how you see fit. Below are some of the most common ways borrowers are taking advantage of their home’s equity.

Paying off High-Interest Credit Cards

During difficult times or even due to simply over-spending, people can get behind on their credit card bills from time to time. Paying off credit cards can not only help you get out of credit card debt, it may save you hundreds or even thousands of dollars on interest payments alone.

Making Home Improvements

Using your home’s equity to make home improvements or upgrades to your property is popular for borrowers that receive a cash-out refinance. Remodeling your kitchen, upgrading appliances or transforming your backyard into a space to entertain guests may also add value to your home for when you decide to sell your home.

Jumpstarting Your Business

Using your home’s equity to jumpstart a small business comes with its share of risks, but may be exactly what you need to take your business to the next level. Purchasing new equipment, expanding to a second location or hiring new staff may be just what your business needs to expand and grow.

Eliminating Medical Debt

Medical bills can not only be unexpected, they can also be a huge drain on your finances. If you have unpaid medical bills or expenses, your home’s equity can help eliminate some or all of that burden and help you get back to normal.

Contact Me to Learn More

With a cash-out refinance, you may be able to tap into your home’s equity to pay off credit cards, make home improvements, finance your small business and more. If you are interested in learning more about refinancing your current mortgage, contact me today to get started. Applying has never been easier with Colonial’s Online Application, and we will be able to see if refinancing makes financial sense for you.

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