Do you know the value of your home in Orange County?
Unless you recently just bought your home or you’re getting ready to put it on the market, you probably don’t really know how much it’s worth. Many homeowners don’t put much thought into the value of their homes unless they are getting ready to sell, and if you’re one of them, then it’s time to consider getting a home valuation from The Estrada Agency. The truth is that there are many different instances when knowing the value of your home is necessary. Here are a few of them:
If you’re planning on refinancing your home while the rates are still relatively low, now is the time to do it, and you’re going to need to know the value of your home. Depending on the loan you choose, you’ll be able to refinance for around 75 to 96 percent of your home’s value. There are many factors that go into qualifying for a refinance, but the amount of equity you have built up in your home is one of the most important. Last but certainly not least, it’s important to know the value of your home when refinancing because it gives you a better understanding of how much mortgage you can afford. Whether you’re refinancing to get lower payments, to get a lower rate or to take a cash-out, it’s important to know the value of your home going into it.
#2. Home Equity Loan or Line of Credit
Did you know that you can borrow off of the equity you’ve built in your home for things, like repairs, remodeling projects or really anything you need? Depending on the circumstance, a home equity loan or line of credit may be preferable to getting cash out through refinancing, but you’ll need to know the value of your home in order to qualify. Most HELOCs (home equity line of credit) require that your equity level is at least 20 percent, and knowing the value of your home will help you determine if you should apply.
#3. Retirement Planning
No matter how old you are, it’s never too early to start planning for retirement, and one very important piece of the retirement puzzle is the mortgage. Knowing the value of your home and how much equity you’ve built in it will open up the options available to you for retirement. Should you sell your home and move somewhere cheaper? Should you take out a reverse mortgage on your home? Should you apply for a home equity loan or line? Should you refinance your home for smaller payments during your retirement years? Knowing the value of your home will help you find the answers to these and many more retirement-planning questions.
Would you like to learn about a few more instances when knowing the value of your home will come in handy? If so, please stay tuned for our next blog.
In the meantime, do you know the value of your home? If not, schedule your appointment with us at The Estrada Agency today to schedule your home valuation.