Page 22 - December 2017

MIKE COYNE
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How to build equity in your home
You’re probably familiar with the term “home equity,” but do you know exactly what it means and how important it can be to a
adding a room or installing a swimming pool. Making ex- tra payments on the principal of your loan, paying your mortgage biweekly instead of monthly and refinancing
your mortgage for a shorter term or lower interest rate can also build equity.
Q: What are the benefits of having equity?
h
meowner? Find out what equity is, how m
it can build up and how you can use it to your advantage.
Q: What is home equity?
FOP Finance
A: When you subtract what you owe
on your home from what your home is currently worth, the difference is the equity. Owe $80,000 on a $200,000 home? You have $120,000 of equity. Equity increases over time as you pay off more of your loan and as your home’s value increases.
Q: How can I build equity?
A: You can build equity in ways other than just paying off your mortgage. You can increase your home’s value by making improvements such as remodeling the kitchen,
Rep t
A: Once you have enough equity, it can be a valuable financial asset. One popular use is a home equity loan or line of credit. These are funds that use your home as collateral in case you can’t or don’t pay them back. Another common use for equity money is putting it toward the purchase of your next home. Any funds that aren’t used to pay the mortgage or real estate agent can be
put toward the down payment. d
For more information, please contact Michael Coyne, vice president of residential lending, Blueleaf Lending at 773- 250-6492 or 847-494-9731 or by email at mcoyne@blue- leaflending.com.
22 CHICAGO LODGE 7 ■ DECEMBER 2017