The financial value of owning a home is in the equity: the amount of money your home is worth, minus what you still owe on your mortgage.
Increasing equity on your Metro Detroit home means you’ll make more money when it sells AND it means you can refinance to get a lower monthly payment. Those are huge advantages!
Of course, every mortgage payment pays money toward the principal of your loan, so equity is always increasing as payments are made! But not all of your monthly payment goes toward the principal. A lot of it goes to pay interest and fund your escrow account for taxes and insurance.
So, how can you increase your equity in your Southeast Michigan home faster?
Here are some ideas!
Increase Home Value
By increasing the value of your home, you also increase your equity. This includes renovating things like the kitchen and bathroom, updating the HVAC system, and keeping up with necessary repairs.
Pay More Per Month
The easiest way to increase your home’s equity is to pay a little more on the mortgage every month than the minimum payment. This extra money should go directly toward the principal of the loan and quickly increase your equity!
Wait for Appreciation
If you’re in a market where real estate values are going up, then a great way to increase equity is simply to hold onto the property and let appreciation do its thing. The more the market appreciates, the more money there is to be made when you sell!
Hope that helps!
If you or anyone you know is wanting to sell their Southeast Michigan home, give Mitten Made Properties a call at (248) 883-3340. We can buy Metro Detroit houses as-if for a fair cash price and close in as little as two weeks!