The mantra of real estate — location, location, location — also can apply to the equity in your home. If you live in an expensive market (even in this economic downturn), such as parts of the Northeast or California, now might be the time to make that move you have always been thinking about – to a region of the country where you can get more house bang for your buck. Not only do you get more but you can also lower monthly mortgage installments and pay off debt. Here are the considerations for cashing in on home equity.
American Dream Benefit
There are several ways to manage extra home equity. You can take out a home equity loan to take care of extra expenses, but this has become very difficult for people with less than tip top credit. Or you can cash out and move to an area of the country where housing and land are cheaper.
Housing Costs and Lifestyle
The house is the biggest expense for most families in the U.S. In some parts of the country, a large percentage of monthly budgets go for the mortgage. If you struggle with monthly upkeep on this payment, and you live in a more lucrative housing market, you would be a good candidate for cash in and move on. Also if you are working out of your home, and location is not a concern for commutes or family, a cash-in and move on may yield a dream home.
With the economy is a funk, it may be the right time to assess your lifestyle, budget and home costs to see if your home equity can lead to a more affordable life.