Do you own a home in Oahu? If you do, you could be sitting on a whole lot of equity.
That is because home values across the country are at a record high. According to recent data from the Federal Reserve, home values hit a collective $26.1 trillion, a record in the first quarter of this year. While the growth in values is slowing down a little, the record levels of equity built up is a good thing for homeowners in Hawaii.
In fact, the report states that home owners across the country owned more than 60 percent of their house’s value in the first quarter.
If you are one of these people who has a large amount of equity built up in their home, then consider taking some time to learn about the refinance process. At Element Mortgage, we are all about educating home owners about their financial options so here are three ways that you could utilize that equity.
- Home Equity Line of Credit
This allows you to pull the money out and pay interest on how much you need. This way, you can set a specific amount of time that you will be accessing these funds.
- Home Equity Loan
This is a one-time loan that comes with a fixed interest rate. This gives home owners peace of mind knowing exactly what their payment will be each month.
- Cash-Out Refinance
This is when you refinance your current mortgage and pull out the equity in your home in the form of cash. You can do this with either a fixed or adjustable rate.
Utilizing one of these options may open doors to you financially and allow you to do things like pay down debt, do home improvements or even travel.
If you are curious as to what your options are and how much equity you may have built up, don’t hesitate to contact one of our mortgage consultants!