How to Build Equity in a House

It can be a challenge to build equity in a house

These days, we all seem to need to build equity in a house. The steps outlined below are the best ways to build equity in a house.

Things You'll Need

• money
• materials
• time

Instructions

1. Pay more than the minimum on the mortgage every month. Even adding an extra ten or twenty dollars to the mortgage payment every month can really add up, giving way to more equity in the house and less interest paid over the long term.

2. Make improvements to the house. A bunch of small improvements can really add up. Replace old doors or windows, one at a time, or add perennials to the landscape outside. Or save up and make one large improvement to the house, like a new roof or new siding. The more of the work which is done by the homeowner, the less the project will cost, no matter how big or small, resulting in more equity in the house.

3. Refinance the mortgage and plan to pay the same amount as before the refinance every month. This will speed up the process of building equity in the house. When the mortgage is refinanced to a lower interest rate, less interest is paid than before the refinance, and if more money goes toward the principal payment on the mortgage, more equity will be gained in the house itself.

Resources

• How to Prepare to Refinance a Mortgage
• How to Prepare for a Home Appraisal