3 Ways To Unlock Your Home Equity

If you have owned a home for even the last few years, you likely accrued some sizable equity in your home. Just in the last 12 months, San Diego's home values have shot up almost 28% year over year.

That's a home value increase we haven't seen since 2013. This means you now have access to the equity you have in your home in a few different ways.

HELOC

A home equity line of credit. This is actually something that you should also have even if you are not using it. A home equity line of credit can be used for pretty much anything you want.

This may include home renovations, paying off debt, or even a down payment on another home. At a point when you may be thinking of selling your home, you can use a home equity line of credit to help with your down payment on the new home, allowing you to purchase before you have to sell.

A major advantage in the market we are currently in.

Downsizing

A great way to unlock your equity is by downsizing into a smaller home. If you are getting closer to retirement and/or are an empty nester, this may be a great option for you. 

For example, if your home is currently worth $1mil home in San Diego and you want to move down into a $700k home, not only will you be capitalizing on your equity but you will also be saving money on other expenses like insurance and utilities.

Property tax increases and/or decreases may vary depending on your age and how long you've been in the current residence.

Reverse Mortgage

If you are retired or entering retirement this could be a great option for you. A reverse mortgage lets you borrow money against the equity in the home. There are a few ways you can receive the money, either a lump sum, a line of credit, or monthly payments.

This also allows the homeowner to get the equity without having to move out of the property. A much better situation when you are older and it's harder to manage to move to a new place.

In addition, reverse mortgage payments can have some tax advantages and shouldn't affect your medicare.

If you or someone you know is looking to buy, sell, or invest here in Sa Diego, feel free to reach out to us. We would love to be your real estate resource.