Benefits for your Home
Summary: taken from Forbes Magazine March 2013
If you are not planning on selling your home , a homeowner can take advantage and benefits for your home with a low interest rate by doing the following:
Real Estate Re-Finance
Re-finance your mortgage since interest rates are at record lows although they move and fluctuate they are still at market lows.Homeowner equity rose 18% from the 3rd quarter of 2011 on average.Typically a lender will require at least 20% equity in your home for you to be able to refinance, you credit score should be above 680. If not, then a FHA loan would be better since there are less rules.
Use Equity for School or Home
You can utilize equity to fund school or complete a home improvement project, a HELOC or home equity line of credit can help with renovations. HELOCs have jumped about 7 % in 2012. An Average HELOC is running at 5.15% over the past year , on a fixed rate the average is 6.25% down from 6.8% . There is more paperwork required for a loan these days since lenders were burned during the bust.
One of the best places to start renovations is the bathroom which has topped the kitchen in recent years being the most important renovation. A tool that can be used is Zillow’s new dig tool
Home Energy Tax Credit
There is a $500 tax break that has been around since 2006. You still have another year to qualify for this subsidy, add energy efficient upgrades like weather stripping , windows or a new furnace and you get $500 credited when you file for 2013 . To understand which projects qualify, you can visit Energystar.gov