Handle with Care!
With the recent rise in home equity with the improving market and the continued easing in the mortgage market people all across the fruited plain are starting to eye their home equity longingly. I’m here to tell you beware. Do to the fact that most mortgages are either 30 or 15 year instruments and many equity lines are interest only you can end up paying a LOT more for whatever you spend your equity proceeds on. Now that is not to say that there are not some excellent reasons to tap this equity. Temporary emergencies, liquidity crunches, seed money to start a business and capital improvements that add value to your home all spring to mind. But remember your home equity represents a financial buffer and all the freedom such a thing provides. If you are thinking about tapping your equity for home improvements give me a call and we go over how much they will add to your value relative to their cost. Enjoy this great article on the subject.