Unless you’re sitting on an ancient Irish castle, or a lake house on top of a yacht on top of a lake on top of a home, building home equity in Minnesota is key when looking to sell. Increasing home equity in Minnesota can be as simple as a new coat of paint or a throwing in a trendy update or two. You can also potentially earn more on your home investment by changing how you pay your mortgage. With these details and possibilities in mind, here are some ideas to consider when aiming to increase your home equity in MN:
Add pizzazz to your future listing description
What words would cause you to do a double take while hunting for homes online? Adding some of these details and updates can help give you a healthy bump in home equity in Minnesota. Some consistent crowd pleasers include…
- Bathroom updates, from new tiling to a bathtub, or even some meticulous grouting or new hardware on drawers and cupboards
- Kitchen modernizations, especially flashy changes like unique, space-saving cabinetry or an island update
- Eye-catching exterior improvements, like prominent trim or rich, wooden garage doors
- New appliance installations, such as a french door refrigerator or an energy efficient dishwasher
- Cutting-edge trendy details, like the latest obsession with rose gold details or discreet, paneled kitchen appliances that blend in with the cabinets and walls
Take control and make your mortgage work for you
Your mortgage helped you buy your home, and now it might be able to help you get more bang for your (and their!) buck. You can use any cash windfalls, like an annual work bonus or tax refund, to add to your monthly payments. Ask your lender to apply any additional funds to your loan principal, and watch your home equity in Minnesota grow! You may also want to shorten the life of your loan bit by bit for longer-term equity returns. Many lenders will allow you to replace your current monthly mortgage payments with bi-monthly, 2-week payments. Generally, this will add the value of an extra installment to your annual mortgage payments, which can be used towards your loan’s principal and reduce the length of your mortgage altogether. A faster payoff means you’ll see a faster growth in home equity in Minnesota!
Step back and look at the bigger picture
If you want to see even more gains in your home equity, refinancing your mortgage is worth considering. Shorter loan terms come with lower interest rates, so refinancing a 30-year mortgage to a new 15-year one might offer major savings. However, refinancing requires a closing, including closing costs that can add up quickly. Generally, refinancing in order to build home equity in Minnesota is only recommended if it leads to at least a 1.5% interest rate decrease.
Cross your fingers and see if your home has any surprise value-boosters
Home equity in Minnesota can also be affected by location, but you might also benefit from some seemingly random factors, such as…
- Your home’s history, from exciting to spooky to just plain interesting
- A street name that POPS, because Lavender Lane is a lot more fun to say than 21343098th Street NW
- Your proximity to a coffee joint, with Starbucks and Dunkin’ Donuts shops tacking on the greatest percentage increase in home value
For more tips and information about evaluating and increasing your home equity in Minnesota, contact our experts at The Antonov Group!