3 Ways to Leverage Your Home Equity

three ways to leverage your home equity

It’s no secret that the pandemic throttled home value appreciation to record highs. In the Denver-Metro Area alone, home values appreciated up to 40% over the last two years. But what does that mean for homeowners? More opportunities to leverage your home equity.

Cash-Out Refinance

Because the value of homes increased so dramatically, homeowners are now poised to access more equity in their homes than ever before. This increase in access to cash is the result of a financing strategy called “cash out refinance.” Oftentimes, homeowners tap into their home equity to help fund renovations, reduce private mortgage insurance or to even pay down consumer debt. But these aren’t the only uses. 


Another way to make strategic use of home equity is to invest that money into the stock market or other high yielding savings accounts/markets that produce a greater return over time. This option is great for families needing to fund an education, plan for retirement, etc. The best part? Your home continues to appreciate in value.

Sell Your Home and Move

Perhaps the most obvious way to leverage your home equity is to sell your current home and put the proceeds towards the down payment on your new home or investment property.

No matter how much equity you take out, your home appreciation isn’t impacted by the loan rate or balance. It’s simply money sitting in a very large piggy bank that is accruing with zero interest. Let us help you break that piggy bank open to grow your wealth and net worth!

Have questions about where to start when it comes to tapping into your home equity?  Give us a call at 720-770-0615.

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