Northern CA Homeowners Enjoy Home Equity Benefits

By Karen Lawson
Local Lender Columnist
May 11, 2007
Housing prices in many areas of Northern California remain among the highest in the US, and homeowners have accumulated large amounts of home equity in many cases. Home equity can seem like little more than "money on paper" to those thinking of selling their homes.

They may realize high profit when selling, but then have to pay a higher price for a new home in the same area. If you plan to keep your home, you can use home equity financing for remodeling, debt consolation, or starting your own business.

Create Your Dream Home with Home Equity Financing

Your home is comfortable, but cramped. You've always wanted a swimming pool, or outdoor kitchen, or both. Refinancing, home equity loans, and lines of credit can provide funds for remodeling, expanding, or adding amenities to your current home. Your mortgage lender can help you determine what kind of home equity financing works best according to the projects and timeline you have in mind. It may also be possible to refinance your mortgage for enough to cover home improvements and other needs such as debt consolidation. Before deciding on a home equity financing option, it's a good idea to review your entire financial picture and decide which priorities make the best use of your home equity. In general, certain home improvements can add value to your home, while using home equity for debt consolidation can reduce interest charges, monthly payments, and may provide tax benefits. Consult your mortgage lender and financial advisor to find home equity financing that works for you.

About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds a Master's degree in English from the University of Nevada, Reno.