For most, this is pretty self-explanatory from the image, but if you’re not in any of these situations, remember that you can also refinance at any time for a very positive reason. You might prefer to have a second mortgage on your home to fund tuition rather than you or a child paying ridiculous student loans for life. You might be doing well in life and don’t want to move, but also would like a new boat in the driveway, or to travel abroad for a year or two. Equity can be your own personal bank that you use and repay when needed. Once you pay it off, it’s there again and usually higher than before because most of the time, equity increases through the years. That’s why so many people use their home equity to purchase a rental property all cash and pay the cash out refinance so they can win better deals and beat other offers that require a financing contingency at contract. Others use a HELOC to buy what they need and keep paying it every month until it closes or they purchase what they pulled out money for.

REMEMBER: You don’t need to be in financial distress to enjoy the gift of equity.

If you need financing anywhere in California, please reach out to me directly, and we’ll get you where you want to be.