Building Home Equity

Owning A Home Is Like Having A Savings Account

The great thing about home ownership is it is much like having a savings account. That home savings account grows as you quiety build home equity, just making your mortgage payment. Contrast that to renting, where someone else’s bank account is doing all the growing at the expense of yours.

Home Improvement Building Home Equity

Making improvements to your residence is an excellent way for building home equity in Boulder’s housing market.

Recently, for my own residence, I invested in a nice patio. There is a firepit, some boulders, lighted steps. The project improved the overall appeal and value of my house. It increased the equity in my office above and beyond the fees associated with the electrician, landscaper and concrete guy.

firepit with white chairs and green grass

Look for opportunities within your home to improve, such as finishing the basement, adding outdoor features or a remodel that updates an important area such as the master bathroom or the kitchen.

Paying Down The Mortgage

I’m always thrilled when a client tells me she has paid down her mortgage. This is a great method towards building home equity. Just today, my client J.M. told me she had reduced her mortgage from $150K to just $22,000. All by making extra payments on her note.

There are two great upsides to this. First, as the principal – the amount you owe on the mortgage – is reduced, you wind up spending less money on the interest. And second, your rapidly building home equity (i.e. Savings!)

Market Appreciation Building Home Equity

One of the best ways to increase the equity in your home is by doing nothing. That’s right, nothing.

As the Colorado housing market improves, so does the equity position in your home. Simply stay on top of your mortgage payment and over time, the gains in the market will translate into gains at your house. Don’ believe it?

The Boulder home market has been so robust in recent years, I’ve seen houses turn over in less than six months. With nothing extra done to the property. Crazy, right?

The greater Boulder home market has been making positive gains since before the Great Recession was over. Median home prices are up in Denver Metro and Boulder. And that increase has owners singing and dancing!

banner saying building home equity and young woman saving money into jars check

Added Benefit of Home Equity

Subsequently, all that accrued equity has a lot of value. It can be tapped into to pay off unwanted debt, fund a college education or assist with an unforeseen medical expense. Or, it can simply be savings that one way you’ll apply towards your next new house!

5 thoughts on “Building Home Equity”

  1. Bob is truly a professional- he is client focused and truly looks out for his client’s best interest. Bob is extremely knowledgeable, he understands the market and he is a delight to work with!

  2. Bob, thank you for working so hard for your customer’s. Not only are you a true professional, but you also really care about each customer you work with. Glad to have gotten to work with you in the past.

  3. Bob knows the Boulder market well and is highly responsive to his clients. Building equity is an essential part of building wealth and he has provided several ways to do this through this blog post. Well done, Bob!

    • Thank you Jennifer for your comment. It all starts with a good mortgage consultant (like yourself!) and a Realtor assisting clients to find their dream home. Then, just being at home is making money (equity). Pretty good deal.


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