I might be a little biased as an Indiana realtor, but I think you should keep a pulse on the value of your home like you do your credit scores.
If you’re planning to sell your home, rising prices are good news. But if you expect to stick around for a while, there are still ways you can benefit as the value of your home appreciates.
1. Can you eliminate your PMI? If you put down less than 20 percent when you bought your home you’re probably paying private mortgage insurance. We might want to discuss having your home re appraised. Eliminating PMI can save you hundreds of dollars a month.
2. Consider a home equity loan instead of using a credit card. Borrowing money based on the equity in your home is a relatively inexpensive way to finance a home improvement project. HELOCs have other advantages over personal loans. Unlike personal loans, HELOCs let you borrow small amounts over time, which can help keep your interest payments lower than if you take out a large sum all at once. They also offer longer repayment periods (30 years vs. 10 years), which means you could pay less per month (though you could also end up paying more total interest over time).
And a HELOC can be far less costly than using a credit card to pay for a home improvement project. Credit card interest rates are typically in the double digits.
3. Potential for refinancing: If the value of your home has gone up significantly, you may be able to refinance your mortgage to get a lower interest rate, a shorter loan term, or to tap into your home equity.
It’s great when the value of your home goes up, but watch your tax bill. In most places in the U.S., higher home values can lead to higher property taxes. If you think your property taxes are too high, you can appeal them.
I always try to be a resource for my clients and help provide advice to help your overall financial goals. If you would like to chat more or have me send you a quick market report to show you what your home is currently worth, please let me know . I love digging into this information for clients and it helps me keep a pulse on the local neighborhoods. Are you looking for an Indiana Realtor? Contact me using this form.
– Stacy Barry