Your House Has Gone Way Up In Value –
What Does That Mean For You?
Depending on when you purchased your home, you may have enjoyed all or part of the run up in prices since 2012 when the market bottomed out. Since that time the median price of a residential dwelling in the Los Angeles market has almost doubled from $350,000 to $637,000. As the saying goes, “That great, but it’s all on paper.” The saying is true, but only to a point. What might you be able to do with your newfound riches.
- If you purchased your home recently and have an FHA loan or a loan with private premium mortgage insurance, you may now be able to strip away that extra cost. You can do this in some cases through refinancing, or in other cases merely by proving to FHA or the PMI company that you now have 20% equity in your home. This could save you thousands of dollars per year.
- If you could afford slightly higher monthly payments you may be able to get a 15 or even 10-year mortgage at a substantially reduced interest rate. Again, you can learn your options by calling Bill Rayman.
- You could refinance your home with the goal of taking cash out for any purpose. Some of those purposes might include: a. Investments in stocks, bonds, real estate, your business, or other ways to spread your assets out into other investment vehicles.
b. Paying for your child’s college.
c. Home improvements, landscaping or large scale remodels.
d. Pay off higher interest loans.
e. Lower your monthly payment by starting over on the 30 years
4. Move up or down in home value, depending on your current needs. We all know stories of folks who have sold their Los Angeles home and bought a mansion in Texas. There are many other possibilities when you have this kind of equity:
a. Downsize to a home or condo you can pay cash for or owe a very small amount.
b. Move closer to the beach or into the foothills.
c. Increase the size or find a more modern home.
d. Retire to golf property or a senior living community
If you are contemplating any of the above, you may want to call Bill Rayman to discuss your options. He has a network of real estate and financial professionals who he trusts and can recommend depending on your needs. Call Bill today at (424) 354-5325