Use Your California Home Equity! Here's How

By Allison E. Beatty
Local Lender Columnist
Feb 12, 2007
Most California home owners have accumulated considerable home equity over the years. If you're one of them, you're probably eyeing mortgage refinancing refinance to put those funds to good use. Why not reinvest that money into something meaningful? Here's how!

Home Remodeling Tops Home Equity Spending

Many California home owners are refinancing their mortgages or tapping into their home equity to fund remodeling projects. Among the most popular projects for California homeowners:

• Kitchen remodeling - from cabinet refacing to major room overhauls
• Bathroom remodeling - from small to major remodeling
• Room additions - for family rooms, sunrooms, etc.
• Decorative touches - use home equity for new furniture and window treatments

Tap Home Equity For Educational Expenses

Have children who are starting college? Want to take vocational classes? Use your home equity. A home equity loan or line of credit also is an ideal way to pay for educational expenses. Both of these options involve taking out a second mortgage on your California home, a quick and easy process. The interest you pay on the home equity funds also may be tax deductible. (See your financial advisor for information).

Medical Expenses - Another Home Equity Outlet

Home equity financing can help pay for medical expenses, such as:

• Surgery
• Physical therapy
• Prescription drugs or co-pay expenses

In essence, you can use your home equity financing to pay for a variety of expenses. The process is straightforward and typically can be completed within a few weeks. As you weigh your mortgage options, consider:

• How much home equity you have
• How much home equity you want to save for emergencies
• Which household or other projects have top priority

About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.