How To Use The Equity In Your Home To Build Wealth

If you’re a homeowner – your home equity is at an all time high. In this weeks video, Amerifund President Jamie Cavanaugh explains how you can use the equity in your home to build generational wealth through property investing.

Transcript:

Hey everyone, it’s Jamie Cavanaugh here at Amerifund with your weekly mortgage update! Last week we talked about all the different reasons why it may still make sense to refinance. Today I want to dive into that further and look at how you can use real estate to build wealth.

It’s true – we’re in a rising rate environment. But because of the demand for housing and lack of supply of homes for sale, property values have never been higher. You don’t have to sell your home to realize some of that equity. Consider this:

Where else can you borrow a substantial amount of money and repay it over 10, 15 or even 30 years at a rate under 5%? What could you do with that money to create additional income streams for yourself and your family? We have many clients doing cash out refinance transactions to turn some of the equity in their homes into cash. They’re using that money to invest in more real estate.

You might be thinking “Prices are so high, why would I want to buy now?” Real Estate is one of the best and most consistent investments that exists. Even with its peaks and valleys it has always been on an upward trend.

We are seeing clients purchase investment properties today (sometimes in other states) and seeing an immediate positive cash flow every month. And even if you’re just breaking even, the potential rent that you collect may offset the mortgage payment entirely. Meanwhile, your property continues to appreciate in value. It may be worth $600,000 today – but what will it be worth in 10 years?
You could create a retirement plan for yourself by way of becoming a property investor.

And the best part is that when interest rates drop again – you can always refinance to lower your rate and payment even more!
If you have ever considered investing in real estate, there has never been a better time to do so.

Thanks for watching, and I’ll see you next week for another mortgage update!

 

 

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