House I Love
  • Home
  • Cleaning
  • Decorating
    • DIY
  • Exterior Design
  • Green Living
  • Home Improvement
  • House Plans
    • Air Conditioning And Heating
    • Construction
    • Gardening
    • Plumbing
    • Roofing
    • Windows
  • Interior Design
    • Bath and Shower
    • Bedroom
    • Furniture
    • Kitchen
    • Painting
Home  /  Reviews  /  What to Do When Your Homes Value Skyrockets (It Might Not Be What You Think!)

What to Do When Your Homes Value Skyrockets (It Might Not Be What You Think!)

Hny5rft May 25, 2022 Reviews Leave a Comment

The real estate market can fluctuate quite a bit and sometimes you find yourself in a situation where your home value has suddenly jumped up quite a bit over a short period of time. This might inspire you to sell, sell, sell, but that might not be the best option all of the time, and adding more value to your home might be a better option. If the value of your home has gone up without warning and you’re wondering what it means for you then keep reading to see what to do when your home value goes through the roof.

1)  Adjust your mortgage and insurance rates

If you still have a mortgage to pay on your home then you might be able to adjust some of the payments you’ve been making if you’ve found that your home value is worth more than the bank estimated. If you hold enough equity in your home, you can actually apply to have your PMI (private mortgage insurance: a payment usually made in combination with your mortgage to protect the bank if you walk away from the loan) canceled completely which would save you quite a bit over time.

Image Credit

To do this you need to pay to have your home appraised (this usually costs around $500) so you can prove that it is worth more. The appraisal will also help you when it comes to reassessing your insurance so it’s worth it in the long run. If you are paying the same insurance rate for a lower value home and you end up with major home damage, your policy might not cover as much as it should when it comes to rebuilding which could leave you in a sticky spot.

2)  Use your new equity to make improvements

Taking equity out on your home is a great idea if you are looking to keep making improvements and increasing its value. There are a few ways you can use your home’s new value to get some cash in your pocket including a HELOC (Home equity line of credit: a low rate loan that’s based on the difference between your home value and your mortgage balance), a cash-out refinance (The bank determines the amount of equity your home has and allows you to take it out in cash) or you might be eligible for a reverse mortgage (a loan that allows the homeowner to access the unencumbered value of the property. These loans are for those who are over 62).

Image Credit

You need to make sure that the money you’re taking out is being put back into a source that will give you more income later, like buying a rental property or adding some complex improvements to your existing property. This is the best way to make sure that the money isn’t wasted and it’s a great way to make some much-needed improvements for free. Make sure you’re not taking out all of it because a crash can happen unexpectedly (which happened in both 2007 and 2008 leaving homeowners high and dry when prices dropped) so only take out what you need.

3)  Sell it off

Selling is the most obvious move you can make when your home price soars and it’s a rare opportunity that might not come along again. The housing market can dip and dive all the time so if you choose to sell right now, you’re taking the chance that the market won’t creep up even higher within a few years. Your choice to sell will largely depend on many factors like how much longer your mortgage is, how much more your home is worth and where you are in your life.

A real estate agent will likely encourage you to sell while the market is hot so make sure you reach out to a few other experts in their fields (like a mortgage broker or a financial expert at your bank) to get their opinion on what your decision should be. We already talked about how you can choose to make improvements on your home by taking out equity and possibly selling it for more in the future but if you are ready to move on then selling is the ideal choice.

No matter what choice you decide to make about your home’s new value, do your research and base it on what is the best for your current situation. If you see this as your “forever home” and want to make sure it’s in the best shape it can be then talk to your bank about your equity options but if you want to move upward and onward then look into putting it on the market. Either way, using the newly increased value of your home to your advantage is a great way to make some money or make some major home upgrades.

Previous Article
Next Article

About Author

Hny5rft

Hi, I am Russell Dawson; I am an entrepreneur, father, mentor, and adventurer passionate about life. At this moment, I am working with home decor and design.

Related Posts

  • robust waste management: • What is the difference between recycling and composting?

    Navigating the Rubbish Realm: Comprehensive Approaches to a Robust Waste Management System

    March 25, 2025
  • What is the most environmentally friendly fencing?

    Eco-Friendly Garden Fencing Ideas: Sustainable and Stunning Boundaries for Your Green Oasis

    March 7, 2025
  • Accounting and Bookkeeping: What are the Differences?

    Accounting and Bookkeeping: What are the Differences?

    February 11, 2025

Recent Posts

  • What paint is safe to use on asbestos?
    How to Safely Paint Asbestos Siding: A Step-by-Step Guide June 10, 2025
  • Creating a Space in Your Home to Support an Elderly Relative June 5, 2025
  • What type of foundation is best for a manufactured home
    5 of the Best Foundation Systems for a Newly Built Home May 31, 2025
  • Makes a Luxury Swimming Pool
    How to Integrate a Swimming Pool Into the Architectural Environment of Your Home May 27, 2025
  • How can I soundproof my garage cheaply
    How to Soundproof Your Garage Workspace: A Quiet Haven for Productivity May 26, 2025

Categories

  • Air Conditioning And Heating
  • Bath and Shower
  • Bedroom
  • Cleaning
  • Construction
  • Decorating
  • DIY
  • Exterior Design
  • Fireplace
  • Floor
  • Furniture
  • Garage
  • Gardening
  • Green Living
  • Home Improvement
  • Home Security
  • House Plans
  • Interior Design
  • Kitchen
  • Lighting
  • Office Decoration
  • Painting
  • Plumbing
  • Reviews
  • Roofing
  • Swimming Pool
  • Windows

Archives

Random Posts

  • Ceiling decorations
    10 ceiling decorations that will make you look up! January 5, 2021
  • Electronic Lock
    KNOW THE DIFFERENT TYPES OF ELECTRONIC LOCKS September 4, 2018
  • decorating-interiors
    How Do You Sell Your House Effortlessly During a Divorce Proceeding October 22, 2020
  • Things to Check Before Calling for Furnace Service Brooklyn, NY! June 28, 2021
  • London Boiler repair Costs
    How to Avoid High London Boiler repair Costs January 4, 2023

Pages

  • Home
  • About
  • Contact Us
  • Privacy Policy

Popular Posts

  • Environment of study or work
    Create an environment of study or work according to your personality! June 12, 2016
  • Fireplaces
    Fireplaces suspended June 12, 2016
  • Dressers cornerbacks
    Dressers cornerbacks June 12, 2016
  • apartments
    Tall apartments June 12, 2016
  • Outdoor furniture
    Outdoor furniture June 13, 2016
Theme by ThemesPie | Proudly Powered by WordPress
  • cancertoto
  • cancertoto
  • cancertoto