USE THE EQUITY IN YOUR HOME

 BY NORA HESTON TARTE

For many homeowners, especially those who purchased their homes several years ago at least, they have a lot of home equity. But until you plan to move, what can you do with that equity? If you have debt, need to upgrade your home, or want to increase your net worth with another investment such as a rental property, you can use your home equity to do so. And it’s easier than you think.

In order to use the equity in your home, a homeowner needs to do what is called a cash-out refinance. The process is almost identical to a typical refinance and often allows homeowners to take advantage of a lower mortgage payment, smaller interest rate, and even—in some cases—eliminate their PMI (private mortgage insurance) from their mortgage. With a cash-out refinance money is pulled from the equity built in your home based on how much you currently owe on your home versus how much it is worth today. All you need to do is be able to qualify for a refinance.

With the large jump in home prices experienced over the last couple of years, many homeowners will find they have more money in equity than expected. And that money can be used to make positive decisions that will put you in a better financial position.

If you plan to sell your home or simply want to spruce it up for your own family, the cash you take out can be used to replace flooring, counter tops, and appliances, or even to upgrade a shower or expand a master bathroom. This in turn can increase the value of your home and gain equal or additional equity.

Or perhaps you want to take advantage of the low interest rates and pay off other monthly obligations with higher interest to consolidate your overall monthly debt into one easy mortgage payment. You can also make that money work for you in a different way. That could include buying an investment property. You’ll already be working with a lender to refinance, which makes asking the questions about what you can afford when it comes to a second property convenient.

Regardless of what you decide to do with the money, the process is the same, and in most cases, you’ll see your cash in just 3045 days.

The entryway is essentially the official welcome into your home. But so often, people see it as wasted space that sits empty instead of utilizing the extra square footage to make a statement. So how do you make your entryway speak for you? The first tip is not to get overwhelmed by its size. Small entryways can serve just as much purpose as larger ones. The goal is simply to make the furniture and accents fit the space.

If you’re working with a small entryway, choose a console that fits. Having some sort of table whether it’s a narrow hutch or a larger organizational piece, is one of the best ways to set the tone. Atop the table, consider two main accents, a floral arrangement and a candle, suggests Mat Wood, coowner of C.R. Porter Home Collection in Stockton.

The floral arrangement can be faux to ensure it always looks fresh, just remember to find a piece that looks real. “We really search hard for convincing products,” Mat says of the inventory at C.R. Porter. Whether the flowers are silk or it’s faux succulents you’re bringing into the space, the emphasis is on a piece that will trick guests into thinking its authentic without creating extra work for you.

The candle is another