Connect with us

CBS News

3 reasons to use your home equity to buy another home

Avatar

Published

on


gettyimages-1130124948.jpg
Your home equity could give you access to the cash you need to buy another home. 

Getty Images


Owning a home has its perks, and one significant advantage of homeownership is the equity you build over time. In fact, right now, the average homeowners has nearly $200,000 worth of tappable equity that can be borrowed against, typically at a competitive interest rate.

So, what can you do with $200,000 in home equity at your fingertips? For some, the answer is to buy another house.

Since the proceeds of home equity loans can be spend on , nothing is stopping you from using yours to purchase another home. And, there are multiple instances in which doing so may be a wise idea. 

Find out how much home equity you can tap into now

3 reasons to use your home equity to buy another home

A home equity loan or home equity line of credit (HELOC) could allow you to borrow a substantial amount of money when you need to. Here are three reasons why it may be a good idea to use that money to buy another home: 

You have lots of equity but limited cash

When you purchase a new home with a mortgage, a 20% down payment lets you avoid paying for private mortgage insurance (PMI). If you’re purchasing a $200,000 home, a 20% down payment equates to $40,000. 

But if you have limited cash on hand, you may face challenges with purchasing a new home as a vacation or investment property. Or, you could be on the hook for extra costs, like PMI, related to the new home. 

A home equity loan could help. For starters, you typically don’t have to make a down payment to tap into your equity. And, you may be able to wrap your home equity loan closing costs into the loan itself to avoid paying out of pocket for the loan costs. 

Get access to the cash you need with a home equity loan today

You want to create a passive income stream

If you want to generate passive income, using your home equity to purchase another house could be the key to doing so. After all, you can use your new home to generate passive income with: 

  • A long-term rental: You can purchase the new home to use as a long-term rental. This can be done on your own or by enlisting the help of a property management company.
  • A short-term rental: You can also list the new home as a short-term rental on websites like Airbnb and VRBO, provided that you’re following all the local regulations and requirements for doing so. While the income from a short-term rental may not be as consistent as a long-term rental, you may be able to charge more per day when you rent your home out on a short-term basis. 

You want a vacation home

Your home equity can also help you buy the vacation home you’ve been dreaming about. Maybe you want a home by the lake to escape city life or want to purchase a small loft in the city to visit during the holidays. Or, maybe you want a second home that’s closer to your grown children or family members but you aren’t interested in relocating. While purchasing a new home can require a significant amount of cash, you could use your home equity to help cover those costs. 

Purchase your second home with a home equity loan now

The bottom line

If you want to purchase a second home, a vacation property or an investment property, you may want to find out how much home equity you have available. Right now, the average homeowner has a lot of home equity they can tap into — and one big benefit of these loans is that they usually come with competitive interest rates. As such, a home equity loan could be a viable option for financing your next real estate purchase. 



Read the original article

Leave your vote

Continue Reading

CBS News

Eye Opener: At least 70 people killed in gang attack in Haiti, United Nations says

Avatar

Published

on


Eye Opener: At least 70 people killed in gang attack in Haiti, United Nations says – CBS News


Watch CBS News



The United Nations said at least 70 people have been killed in a gang attack in Haiti. Meanwhile, a 21-year-old Yazidi woman was rescued from Gaza after a decade. All that and all that matters in today’s Eye Opener.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Floods, landslides struck parts of Bosnia as residents slept, leaving at least 16 dead and several missing

Avatar

Published

on


A severe rainstorm struck Bosnia overnight Friday, killing at least 16 people in floods and landslides in several towns and villages in central and southern parts of the country, with surging waters rushing into people’s homes as they were sleeping.

Rescue services in the south said several people were missing and called on volunteers and the army to assist as roads were closed and houses left without electricity.

Josip Kalem, a resident of Fojnica, one of the towns hit by the floods, said his dog’s barking woke him up at around 4 a.m. When he came out on the terrace, he saw the water rising rapidly.

“I came down, woke up my wife, and we looked around, we could not get out of the house. We saw more and more water coming in,” he said. “All of a sudden, the water was flooding the garage, basement, my car — everything. The water swept it all away, including my dog. Flood took it downstream.”

Andja Milesic, another resident of Fojnica, also said she was caught by surprise in the middle of the night.

“When I woke up, my bedroom floor was already soaked. I walked into the hallway — water was everywhere — the living room, everywhere,” she said. “It was horrible.”

APTOPIX Bosnia Flooding
A car is submerged in flood waters outside an apartment building in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

Armin Durgut / AP


Darko Juka, a spokesman for the local administration, said at least 14 people had died in and around the southern town of Jablanica. Officials later said two more bodies have been found.

“Those are the ones who have been discovered by rescuers,” he said. “We still don’t know the final death toll.”

“I don’t remember such a crisis since the war,” Juka said referring to the 1992-95 war in Bosnia that left the country in ruins. “The scale of this chaotic situation is harrowing.”

Defense Minister Zukan Helez told N1 regional television that troops have been engaged to help and that the casualties were reported.

Helez said that “hour after hour we are receiving news about new victims. … Our first priority is to save the people who are alive and buried in houses where the landslides are.”

A pregnant woman lost her baby after she was rescued from the floods and transferred to a hospital in the regional center of Mostar. Authorities said doctors were fighting for her life as well. Separately, a child was successfully rescued and hospitalized, local officials said.

Rescue services in the towns of Jablanica and Kiseljak said the power was off overnight and mobile phones lost their signal.

The Jablanica fire station said that the town was completely inaccessible because roads and trainlines were closed.

“The police informed us that the railroad is also blocked,” the state rescue service said in a statement. “You can’t get in or out of Jablanica at the moment. Landline phones are working, but mobile phones have no signal.”

It urged people not to venture out on the flooded streets.

Human-caused climate change increases the intensity of rainfall because warm air holds more moisture. This summer, the Balkans were also hit by long-lasting record temperatures, causing a drought. Scientists said the dried-out land has hampered the absorption of floodwaters.

Bosnia Flooding
Apartment buildings are reflected at a flooded soccer field after a heavy rain in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

Armin Durgut / AP


Drone footage broadcast on Bosnian media showed villages and towns completely submerged under water, while videos on social networks showed dramatic scenes of muddy torrents and damaged roads.

One of the busiest roads linking Sarajevo with the Adriatic coast via Jablanica was swept into a river, together with a railway line in a huge landslide, according to photos.

“Many people are endangered because of big waters and landslides. There is information about victims and many injured and missing persons,” said the civic protection service.

Authorities urged people to stay on the upper floors of their homes. Reports said surging waters swept away domestic animals and cars as the water swiftly filled up lower floors of buildings.

The heavy rains and strong winds were also reported in neighboring Croatia, where several roads were closed and the capital of Zagreb prepared for the swollen Sava River to burst its banks.

Heavy winds have hampered traffic along the southern coast of the Adriatic Sea, and flash floods caused by heavy rain threatened several towns and villages in Croatia.

Floods caused by torrential rains were also reported in Montenegro, south of Bosnia, where some villages were cut off and roads and homes flooded.

In 2014, floodwaters triggered more than 3,000 landslides across the Balkans, laying waste to entire towns and villages and disturbing land mines leftover from the region’s 1990s war, along with warning signs that marked the unexploded weapons.



Read the original article

Leave your vote

Continue Reading

CBS News

The Uplift: Steve Gleason and more

Avatar

Published

on


The Uplift: Steve Gleason and more – CBS News


Watch CBS News



NFL legend Steve Gleason shares his experience with ALS in a heartfelt conversation with David Begnaud. A man whose life changed drastically in a split second is using the life-changing event to inspire others. Plus, more heartwarming stories.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.