Your Home Equity Can Make You Rich
2008-08-19 20:09:45
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You have worker hard, made every payment, and paid down your mortgage quite a bit since you purchased your house. Now, isn't it time you made your house work for you?
There are many ways that you can use the equity that you have built in your house to save and even make money. This is something that not many people take advantage of, but if they read this, then they will wish they would of.
Pay Off Your Credit Cards
Credit Cards are very very expensive. The average credit card charges interest rates around 20%. On an average balance of $20,000, the interest charged to that card would be $4000. That isn't even including any of the huge fees charged over the course of a year.By moving that money from your credit card to your mortgage, then you will save almost $3500 on interest on that card. If you add in taxes and other fees, then the savings are too much to resist.Investing Your House
By using the equity you have built in your house to invest, it can allow you to make money and save for retirement. For example: Let's say your house increases in value by 5% annually. Your investments have increased by value of 8% annually, and you have a house worth $100,000 completely paid off. If you take your mortgage and refinance it for investments, then you could get as much as $95,000. Then if you invest all the money, then you would make $12,600 annually off your investments, and the interest you pay on your mortgage may be take deductible.
Ready to get the best mortgage? Click here to find out how!
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