My Favorite Ways to Add Home Equity!

[@shelleynobleart]

No one explains these important things but you, Tara. Thank you so much.

[@melaniehomburg3366]

Ha! How appropriate. I was just going over my mortgage bill and thinking about our equity when you posted this, lol. I started throwing an extra $35/month at the house. Now. This is a tiny amount, I know. Our cash is going to my tuition at the moment. But psychologically it get's me in the habit of paying extra. When I'm done with school next spring and not stock piling money for school I'm already salivating at bumping my payment up. Monthly I'm messing around with the bankrate mortgage payoff calculator and plugging in different payment amounts to see how fast we can pay it off and how much interest we save etc. Thanks for the video!

[@growagarden54]

Make sure the extra money goest towards the "principal". Very important.

[@TT-dy9gi]

Love love love your videos.

[@shelleybean1112]

Great video thank you ❤

[@MrEddie68000]

Question: How does your money grow over time when it becomes equity? This question came up when you compared the rate of return between money as equity in a home and in a savings account. After making this point, you mentioned that another way that equity grows is through appreciation. I thought that appreciation is what increased the rate of return on the equity you accrue through mortgage payments or an extra mortgage payment. How is the rate of return on your money and appreciation different? By the way, I really enjoy all of your videos. Thanks for making them.

[@aaronhodgson4482]

Love your video

[@dinahsoar6982]

Don't forget, homes don't always appreciate. Remember the bubble bursting in 2008. Houses peaked in 2006, the decline started in 2006; the decline continued until 2012. Many people were underwater, many lost their homes or walked away from them. My sister paid almost $600k for a home in Chicago, and when the bubble popped it was only worth half of that. She continued making the payments and today, 9 years later is is finally back up to the price she paid for it. Also, if your money is in savings, it cost you nothing to borrow it. If it's in your house, a home equity loan currently will cost you close to 6%. Savings interest rates are rising and will continue as mortgage interest rates rise. In 2009 passbook savings, no risk, guaranteed by the FDIC up to 250K now, earned 4% compounded annualy. In the 1980's it was paying 6 and 7%. In 1987 money market savings, again no risk, was earning 10% compounded annually. Average appreciation on a home runs 3 to 5% depending on the part of the country and it's location locally. The good thing about owning a home is that, either way, renting or buying you will make a monthly payment. When you buy after 30 years you've own the roof over your head. Pay rent for 30 years and you've got nothing, and you will pay till the day you die if you continue to rent. I advocate buying a house if possible and you are going to be there at least 2 or more years minimum. It's a pleasure seeing someone as young as yourself being so diligent when it comes to financial things. You are a good steward.

[@Jamiejamjar]

Good, sensible advise. :)

[@patwagner9308]

Haven't seen a video by you since 3 weeks ago....hoping all's well.

[@rlhuntz]

So, what you're saying, then, is that I can add extra payments to my mortgage, and when I find a home I want to move to, I can take out a home equity loan to put a down payment on the new house? Sorry, I'm just trying to better understand. My husband and I bought a house 3 years ago and have been adding extra payments whenever we can. I recently decided that I need to move somewhere else, so we started putting all our extra money in our savings account. If I can use the equity in my home for a down payment, I would love to pay down my mortgage again! 🤗

[@MrEddie68000]

Ronni, I thought we are both confused about the same point that she made in this video. Hopefully, she explains it.

[@dinahsoar6982]

You sell your current house, pay off the mortgage balance plus closing costs, etc and what is left is yours to do with as you please. But if you borrow the equity on the home you own now, and don't sell the home you own now, you will have to continue paying that mortgage payment plus the equity line of credit payment. Also, interest rates for equity loans are higher than loans on a first mortgage. Many advisors recommend you put extra money into retirement savings and college funds for children if you have them; fund those first then put extra money on your mortgage to pay it down more quickly. Check out Dave Ramsey on youtube; he has solid advice.

[@lesbuckwalter8988]

Miss your vids. Buck

[@fortitude2557]

I'm missing your cooking videos ;(