How to Get More Equity in Your Home in Less Time

As a home buyer, you should be interested in finding out how to get more equity in your home in less time. There are ways to build home equity besides waiting for the real estate market to go up again. Some are simple, and others will cost a little bit of investment money. But, dollar for dollar, your investment in your home can be made to bring back a higher return than the amount of cash you spent on it.

A time-honored way to get more equity in your home in less time is to do home improvements. Improvements can be done everywhere in the home, but some places will see more value added than others. For example, curb appeal is important to desirability and value. By making the front yard and entrance areas more attractive, you increase chances of a sale if your home is on the market. Making small improvements to the yard and entrance to the home are fun to do and do not cost a ton of money.

Inside the home, statistics show that the rooms to work on first and foremost are the kitchen and bathrooms. Improvements to these rooms will bring back a faster return on your investment and boost equity value more than if you were to install an expensive swimming pool in the back yard.

Adding more space to your home will increase its value, and the goal would be to make the increase in value far greater than the actual cost of your addition, thereby upping your equity again. Building additions are not the fastest way to increase equity. Remodeling, painting, and new carpeting are quicker ways to add value.

If you want to get more equity in your home in less time, start with painting rooms. A fresh coat and color or combinations of colors can do wonders for the house atmosphere. Painting means cleaning out clutter, which is another help that makes rooms look larger. After painting, clean rugs professionally or install replacement carpeting or floor covering. Moving from carpeting to wood flooring can increase the value as wood floors are very desirable on the market.

On the monetary side of things, you can add extra to the principal payment every month to decrease your mortgage quicker and build equity in your home in less time. Make an extra full payment, or make payments bimonthly to accelerate the time you have left to pay.

If your mortgage is already completed it is too late to make a bigger down payment, which is a great way to add fast equity to a home. However, you may want to consider refinancing to a shorter term mortgage. This will cost some cash to do, but in the long run, you will build equity in your home faster in less time with a shorter term mortgage. If you are staying in the home a long time, this is the thing to do first to get more equity in your home in less time.