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f you're a homeowner in the United States, you may be pleased to know that you're sitting on a record amount of home equity. In fact, Americans have almost 30 trillion dollars in home equity, according to CNBC. This means that you have a unique opportunity to cash in on this surge of money, while still keeping your home. Here are three ways that you can access your home equity:
Firstly, you can use the funds as a down payment for your new home, without worrying about selling your current one. This can be a great option if you're looking to upgrade or downsize your home but don't want to go through the hassle of selling your current home.
Secondly, you can use your home equity to pay off other higher-interest debts to free up monthly cash flow. This can be a smart move if you have outstanding debts that are weighing you down financially.
Thirdly, you could make amazing renovations to your current home. This can be a great way to increase the value of your home while enjoying the benefits of a newly renovated space.
To access the funds without selling your home, you can either do a cash-out refinance or a home equity line of credit, also known as a HELOC. With a cash-out refinance, you can refinance your mortgage for a higher amount than you currently owe and receive the difference in cash. With a HELOC, you can borrow against your home equity as needed and only pay interest on the amount you borrow.
Overall, tapping into your home equity can be a smart financial decision. Just be sure to do your research and speak with a financial advisor before making any major decisions.