Leveraging Home Equity: 4 Smart Strategies for Portland Real Estate Owners

If you’re a Portland Metro homeowner, odds are your equity has grown significantly over the last few years. Equity builds over time as home values grow and as you pay down your home loan. And, since home prices skyrocketed during the ‘unicorn’ years, you’ve likely gained more than you think.

According to the latest Equity Insights Report from CoreLogic, the average homeowner has more than $274,000 in equity right now. That much equity can help you achieve certain goals. In a recent article, Bankrate elaborates: 

“While the pandemic created serious challenges, the silver lining for anyone who owned a home was the sizable equity gain. Understanding how home equity works, and how to leverage it, is important for any homeowner.”

Here are a few examples of how you can put your home equity to work for you.

1. Buy a Home That Fits Your Needs

If your current space no longer meets your needs, it might be time to think about moving to a bigger home. And if you've got too much space, downsizing to a smaller home could be just right. Either way, you can put your equity toward a down payment on a home that fits your changing lifestyle. A real estate agent can help you figure out how much equity you've got and how to use it when buying your next home.

2. Elevate Your Current Space with Strategic Renovations

Stay in your beloved Portland home while making it even better. Channel your home equity into strategic renovations that enhance your living space and boost its market value. Collaborate with our LivPortland real estate professional to pinpoint high-impact improvement projects that will yield significant returns when it's time to sell.

3. Pursue Personal Ambitions

Your Portland home equity can be a catalyst for making your lifelong dreams a reality. Whether it's launching a new business venture, securing your retirement, or investing in education, responsible utilization of your equity can create a lasting impact on your life. Discover how to leverage your equity wisely to fund meaningful endeavors with guidance from a trusted Portland real estate expert.

4. Safeguard Your Homeownership with Informed Choices

While Portland's real estate market remains strong, unexpected financial challenges can arise. Understand how your home equity can provide a safety net during unforeseen circumstances. In times of financial difficulty, tapping into your equity can help you navigate potential foreclosure risks and maintain control of your homeownership journey. Learn more about your options and safeguards with insights from the knowledgeable Portland real estate community.

In an article, Freddie Mac explains it this way:

“If exiting your home is the best option for you, selling with equity may be a good option. When selling with equity, you are using the proceeds from selling your home at a higher price than the amount you owe on your mortgage to pay off your remaining mortgage debt.”

Bottom Line

Your equity can be a game changer in reinvesting in your needs, pursuing your goals, and even helping you avoid foreclosure during difficult times. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.