One of the main advantages of buying a property is that you may be able to build home equity over time if your home appreciates in value and you continue to pay down your mortgage. There are a number of benefits of doing so.
Lower Rates
One reason why it is good to build equity is that you may receive lower interest rates and monthly payments. Due to a lower risk, a lender may be willing to provide you with lower interest rates and may not require that you pay private mortgage insurance. This may save you hundreds of dollars per month.
Home Equity Loans
You may also qualify for home equity loans. Many mortgage lenders are willing to provide you with these loans or lines of credit if you have more than a certain percentage of income in your home. Once you have it, you may be able to use the money for any purpose you see fit. One great option would be to pay off credit cards or other types of debt with high interest.
A home equity line of credit can also act as a great emergency fund. If you have a line of credit, it could also be used to make a home repair, pay a medical bill, or provide you with liquidity when you need it most.
For more information about how to build home equity or obtain home loans in Georgia, contact us through our Georgia Heritage FCU website or call us at 912-236-4400.
