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REDDITBeyond the process of saving and then purchasing a property, many people do not consider the financial impact of their house. Take interest rates, for instance – according to the Fed, they will now stay at 2.5% for the foreseeable future. How many home owners have used this 12 year period of low rates to consider a second look at their finance? This is a primary consideration to be taken when looking at getting a bit extra from your home. Alongside re-assessing your mortgage situation, there are a few other ideas that you can look into to make your home create a bit extra cash for you and your family.
Reassessing your mortgage
With average mortgage lengths sitting at around 30 years, someone paying off their mortgage today could ostensibly make huge savings on their interest rate. Alternatively, someone who took their mortgage out in the 1980s, a time of huge interest rates, could look towards equity release now without seeing a considerable change in their monthly outgoings. As a result of low interest, home equity is at an all time high – around $152bn – and this is a good option for raising funds. There are a lot of opportunities on offer, too. In Virginia, the reverse mortgage is popular and legislated for as a way to release equity. Home equity loans are another option, but vary between states. For instance, Florida allows only equity loan per home, there are no such restrictions in VA.
Making your home work for you
Americans, by and large, own their home, but 35% of the populace rent, according to Citylab, whether that’s through choice or otherwise. For homes with spare rooms, this is another excellent way to create extra income and improve the family budget sheet. Bear in mind that Virginia has a relatively strict landlord regulations and you will be required to follow these as the homeowner. However, there is money to be made – the average price of all rentals in Virginia Beach is $1,140 pm, for example.
Create a business premises
If you have the spare hours and time, you can also look to use your home as a business premises. This can be from online work, or by providing a service to the local area. This can be as simple as renting your garage as a storage space, or providing courier services to local businesses. Currently,
Over 3.5m Americans work from home for at least half the week and this number is getting bigger. It’s likely that more industries and opportunities will be open to the idea of having workers remotely completing tasks from the comfort of their homes, opening up doors for you and your family.
The family home is a place of comfort, but it can also provide more money for you and your family and help you to grow. The most straightforward route is through your home finance. With a little more effort and ingenuity you can turn your home into a money-generating opportunity, whether through work or rental opportunities.
