Equity take out 


After buying a home, building equality in the property is an excellent bonus. Once you build up equity, you can tap into it when needed! Maybe you want to purchase a residential rental property or a vacation home. Perhaps you want to give a gift to a family member for a downpayment on a new home. Or it could be time to make some home improvements, pay tuition, buy a car, or pay off high-interest credit cards. 

Paying down your mortgage increases your equity. Keep in mind that your equity can also increase if your home value rises. For starters, subtract the outstanding amount of your mortgage from the price you paid for the property to find your equity. The more equity you have, the more options you have!

Contact us today at LeSolace. Our goal is to take away the stress from your life when dealing with debt. Our licensed agents and mortgage broker are ready to help you with mortgage underwriting and credit structuring. LeSolace has affiliate lenders for mortgages in both alternate and institutional lending domains.

Equity Take Out

Owning a home is a big responsibility. However, one perk of being a homeowner is the ability to build wealth over a period of time. This is EQUITY. When making a mortgage payment, a percentage goes towards the principal balance while the rest goes to pay interest. Property taxes and homeowners insurance are also included in these payments.

You don’t get equity right off the bat. You can often borrow up to 80% of the value of your home. Yet you must have 20% equity before a home equity loan is an option.

A home appraisal is critical when it comes to getting equity on your home. The first step is to look for comparables in your area and ask a real estate agent their price point. Once you have an idea and actively consider taking out equity, you can hire a professional appraiser for
$300- $500.

HELLO

HELOC, your ‘home equity line of credit,’ is the type of loan you sign when you take out equity. Use some or all of your approved loans. Repaying your outstanding balance brings down your principal, and therefore the number of available credit increases—this acts much like a credit card.

Ways to Increase Your Equity


  1. Make a larger down payment. Increasing your downpayment means you put more equity into your home from the get-go.
  2. Make more significant monthly mortgage payments. An extra $50 to $100 a month can accordingly increase your equity over time. Some mortgages have penalties if you pay off your loan quicker than the contracted time frame.
  3. Refinance to shorten your mortgage loan term. Lower interest rates and fewer payments are always a win. Select a shorter loan by choosing a 15 or 20-year loan over a 30-year loan.
  4. Pay more when you can; set up additional payments. When you get that bonus at work, a tax refund, a cash gift, or inheritance, use the money to pay down your mortgage.
  5. Increase the value of your home by completing improvement projects. For example, a kitchen remodel is a great way to add value to your property. Investing a small amount of money can often bring in a huge return! An addition is another option.

What Causes Equity to Decrease?


Equity isn’t always increasing. There are some times when it goes down. Here are the top three reasons you may lose equity in your house. Be aware so you can stay ahead of the game!

  1. Once you borrow against your home by getting a cash-out refinance or second mortgage, you lose equity. You’d have less since you just cashed it out.
  2. Falling behind in your mortgage payments causes your equity to lower. Missing payments is a big no-no. Additionally, late payments can negatively affect your credit.
  3. If your home’s value decreases, so does your equity. Real estate crises and financial recessions do happen and cause issues with a homeowner’s equity.

Contact LeSolace Today

At LeSolace, we put together lend + solace. Google defines solace as “comfort or consolation in a time of distress or sadness.” This is our goal to bring peace to you during this often challenging time of change. Every situation is unique when it comes to taking out equity.

Homeowners can get an idea of the process online, but talking with a professional is essential. Let us share the options that would work best for you today! We are ready to help you move forward in life!

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CONTACT A MORTGAGE
PROFFESSIONAL TODAY!

CONTACT A MORTGAGE
PROFESSIONAL TODAY!

info@LeSolace.com
1-888-622-2671
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4145 N Service Road, Suite 200, Burlington, ON L7L 6A3
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