3 Ways to Tap Into Your Home Equity
If you’re a homeowner, you have the option to tap into your home equity in order to get cash for whatever you need. However, there are a few different ways to do this, and each one comes with its own set of pros and cons. Here’s a look at three different ways to tap into your home equity so you can decide which one is right for you.
1. Selling Property Outright
If you sell your property outright, you’ll be able to get the full value of your home in cash. This is great if you need a large sum of money all at once, but it does mean that you’ll no longer own your home. You’ll also need to find somewhere else to live, which can be difficult and expensive.
2. Equity Sharing Agreement
With an equity sharing agreement, you’ll be able to sell a portion of your home’s equity to an investor in exchange for cash. This is a good option if you need some money but don’t want to give up ownership of your home. The downside is that you’ll only be able to get a portion of the value of your home, and you’ll still need to make mortgage payments.
3. Home Equity Loan
A home equity loan allows you to borrow against the value of your home and get the money you need in cash. This is a good option if you need a large sum of money all at once and you’re comfortable with taking on debt. The downside is that you’ll need to make loan payments every month, and if you can’t make the payments, you could lose your home.