With interest rates low, and home prices rising, we have many of our Gay Real Estate .com clients asking if now is the time to buy a second home ~ we think the timing is great IF the investment is affordable to you… also after the recent crash, we’d prefer you not have all your eggs in one basket.
With housing markets heating up and interest rates still low, it can be a great time to invest in residential homes for sale. But if you don’t have a lot of extra cash on hand, how do you pay for it?
There are the usual methods, like financing the purchase with a mortgage or selling some stocks and bonds, and the usually bad ideas, like taking money out of your IRA or a loan from your 401(k), but some second home buyers have another option: the equity they’ve built up in their home.
Home equity is the difference between what a person owes on their mortgage and their home’s market value. For example, someone who owes $200,000 on a home that is worth $300,000 has $100,000 in home equity.
As home prices rise nationwide, so too does the value of your home’s equity…
Read the full story at: CNN/Money