1. Owning a Larger Chunk of Your Home

Owning a home is a dream for many families. In fact, it may have been a dream of yours and now that you are facing the possibility of home ownership, you may wonder what you can do in order to build equity within it. In this publication, we are going to take a look at some fast ways that you can build home-equity and walk away from your property with plenty of money in your pocket. These suggestions can help you to build equity over time, but they can also be used to build it very quickly, even in a depressed market.

One of the factors that we will consider in this publication is the many benefits of owning a home and building equity within it. More than likely, you have some primary reasons why you are interested in owning a home. It may be the freedom that goes along with it or perhaps just wanting to put your money into something that you can call your own. Those are basic benefits, but there are also many other reasons why people purchase properties, some of which are rather obscure. By understanding the different benefits that are available, it makes it easier for you to put up the initial money and take the necessary step of making the purchase.

Most people have a basic understanding of home-equity, but it is unlikely that they would be able to explain it thoroughly if they were asked to do so. We will discuss the definition of home-equity, why it is so important for you to understand what it is and why you need to build it. Having a better understanding of what you are trying to do will obviously make it easier for you to do it. In addition, it allows you to wrap your head around the concept and to feel as if you are truly accomplishing something while you are taking the necessary steps.

There are a number of ways to build equity within the home, and we will discuss those methods in detail. One of the first things that we will consider is building equity by paying down the mortgage as quickly as possible. There are some ways for you to do so and with the right knowledge under your belt; you would be surprised with how quickly the principal balance on your mortgage will melt away. Some of the methods that we will discuss can even be done without affecting your overall payment and budget. Others will require more effort on your part, but the effort is well worth it.

Another way to build equity within the home is to make home improvements. It is important for you to understand which improvements are going to make a difference in the value of the home. It is not simply a matter of doing anything possible to make the home more livable; you need to understand what each home improvement is going to do to the bottom line. After all, you may end up spending a considerable amount of money improving one part of the home while only building up the equity a small amount. In this publication, we will talk about the way to build equity through making the right home improvements. It will help you to build equity in the home and keep more money in your pocket.

Although making home improvements for the specific purpose of boosting the equity quickly is important, there are also some things that can be done around the home that will help to keep the equity at a very high level. One of the things that you can do is to maintain the home properly, which will help to build the equity slowly and will also help to keep the equity at a very high level. This is done through various maintenance projects that we will discuss in this publication, along with increasing the curb appeal of the home so that it will easier, even in a market that is in a downturn.

Although the bulk of this publication is going to be about building equity in a home, there may also be times when you experience a problem with negative equity. In fact, it wasn't all that long ago that the market experienced a significant downturn and many people found themselves in a very difficult situation. Some families lost their homes as a result negative equity and they had loans that ballooned after a certain number of years. Although it can be difficult to deal with a problem with negative equity, it certainly is not impossible to overcome such a difficulty. We will discuss how to deal with the problem effectively in this publication, so that you can see your way through it if it happens to you.

It is important to recognize that there are always going to be variations in what can be done to build equity within the home. For some homeowners, it is going to be a matter of purchasing a home, making some quick changes to it and selling it for a higher price. That is something that will be discussed in this publication, and it can help you to make money very quickly through the equity that you have in the house. In addition, there may be families that live in the house for many years and never fully take advantage of the equity that is available until it is time for retirement, or perhaps even for an upgrade.

When you consider the possibilities of building equity within the home and you keep them in mind in regards to your own circumstances, there are going to be options available to you. This publication is designed to help you to build equity quickly so that you can take advantage of those options. It is our sincere hope that it helps you to get more out of your home and to do what is necessary to make it one of the greatest assets that you have at your disposal.

2. The Benefits of Home Ownership

Owning a home has certainly benefited many families, and there are a number of reasons why you may want to consider homeownership as well. This chapter is going to focus on the benefits of owning a home, as well as the benefits of building equity in the home quickly. You will find that it is motivational, helping you to do what is necessary to provide these benefits for your family. Although most of the benefits will be seen by all homeowners, some are only going to be seen by those who have specific circumstances. It is also likely that you will experience your own benefits that are not covered in this chapter.

Home Ownership Benefits

Options - Perhaps one of the greatest benefits that you will experience when you own a home is that it will provide you with additional benefits that you likely did not experience when you were renting a property. Many of those options will be seen in the way that you can change the home and improve it according to your specific needs. Those options are going to be of great benefit when you want to increase the equity within the home as well.

Privacy - Many individuals and families who rent struggle with a lack of privacy that seems to exist under those circumstances. Perhaps you live in an apartment building along with many other people and you might hear them continually through the walls, floors and ceilings. Of course, this would also make you concerned about the possibility that they could hear you as well. When you also consider the possibility that most people will know your business in a tighter community, the benefit of privacy is one that should be considered for home ownership.

Pride - When you rent an apartment, you will have a certain amount of pride in what you do with it, but it will be much less than the pride you can experience when you own your own home. Even if you are only purchasing a home and building equity within it to sell it quickly, you will still have pride in what you are doing and in what you're able to accomplish.

Predictability - Do you struggle with the possibility that your rent will increase or that you may need to move out of your apartment because of the needs of the landlord or owner? These are common problems that occur with individuals who rent properties regularly. When you own your own home, it is much more predictable because you know what you're going to be spending every month on your mortgage and, provided you pay the mortgage, you will have a roof over your head.

Value - Although this is somewhat related to the equity within the home, it is also a benefit of home ownership as well. When you rent an apartment or other property, you will be putting out money every month without the hopes of getting anything in return for it. Owning a home, however, provides value because you will be building equity within the home as you continue to pay on it. That is what the bulk of the information in this publication is associated with.

Taxes - One other benefit that you can consider is that you can deduct, some of the money that you are putting into the home, on your taxes. There are even greater benefits when you own a business that is operated out of the home, but even if you are not self-employed, the tax benefits are going to be far greater with owning a home than what you will experience with renting a property.

Disadvantages of Home Ownership

Along with the advantages that are discussed above, there are also some potential disadvantages that are associated with owning a property as well. It is important for you to consider, not only the positive aspects but the potential problems that could occur as well. The following are some of the more common disadvantages that need to be considered before buying a property.

Responsibility - Many individuals who rent an apartment become quite comfortable with the fact that they don't need to care for the general maintenance within it. Owning a home, however, puts you in the driver’s seat when it comes to repairing any problems. It doesn't matter if it is a small problem, or even a large problem that could cost thousands of dollars, when you own a home; it is your responsibility to care for it.

Questionable Equity - Although there are many things that you can do to improve and increase the equity in your home quickly, there is also a degree of unpredictability that is associated with it. One of the primary ways that this unpredictability is seen is if the market should happen to turn and drop suddenly. One day, you may be sitting with a considerable amount of equity within the home and within a matter of days; you could be at negative equity. Of course, it is rare that this occurs but it has taken place in the past.

Options - Even though there are benefits to the options that are available when you own a home, there are also potential problems that are associated with those options as well. One thing that needs to be considered is the possibility that you will be so closely tied to the home that you will not be able to simply pick up and move to a different location. If you have roots, owning a home is beneficial but if you are somebody that likes to change locations on a whim, you may want to consider renting.

Out-Of-Pocket Expenses - We already considered the potential expenses of maintaining a home and caring for any large repairs that may be needed. There are also other out-of-pocket expenses that could include down payments, moving expenses and closing costs. If you do things properly and build up the equity within your home, you can compensate for those extra expenses fairly quickly. You should be prepared for them in advance, however, so that you don't get blindsided by sticker shock.

The Benefits of Having Equity

The benefits above are associated with home ownership in general, but below, we are going to discuss some of the benefits of having equity within a property.

Options - Again, it is necessary to consider the options that are available if you have equity within your home. Quite simply, the options that are associated with positive equity can take you almost anywhere that you need to go, within the limits of what the equity amount has to offer. If you rent an apartment, you can set some money aside in savings every month, but it is different than having equity built up in the home.

Upgrading - Another possible benefit of having positive equity within the home is that it can help you to upgrade your home much more easily than purchasing the home and moving from a renting situation. In fact, some people have used equity within the home to continue to move to a new location until finally, they were able to own the home outright.

Credit - When you have equity within the home, it is possible to get a home equity line of credit. This line of credit can either be used as a single payment to you for whatever purpose you need, or can be set up as a revolving line of credit, so you can use it in a similar way to a credit card. Home equity loans have many benefits, but you also need to be cautious about the pitfalls that may be associated with them. As long as you are able to manage the payments, you can use the money for any purpose that you desire.

Refinancing - One other potential benefit of having equity built up within the home is that you can refinance the home much more easily. When you first purchased the home, it is likely that you do so with a down payment of 20% or less. As the equity continues to build up within the property, however, refinancing it becomes possible, while still maintaining some of the equity within it. In that way, you can take advantage of getting some cash out of the property for your own personal needs, or perhaps even refinancing at a lower interest rate.

These are just a few of the many benefits and potential problems associated with home ownership and building up equity within the property. You will likely find that you are also experiencing your own benefits, depending upon your circumstances.

3. What Is Equity and Why Should You Build It?

This publication is designed to help you to get the most out of your property. By building up the equity within the property quickly, you can use the money that is now available for a wide variety of purposes. For some individuals, it becomes a long-term savings and it can even be built up over the course of a lifetime for retirement purposes. For others, however, the benefits are going to be more immediate and short-term, including getting a home equity line of credit, or perhaps even using the equity within the home to purchase additional properties.

Although there are many benefits associated with building home-equity quickly, and we will discuss how to do so in this publication, there is often some confusion over what home equity is. In this chapter, we are going to take a closer look at the definition of home-equity and how it may differ from one property to another. Additionally, we are going to take a look at the reasons why you should build equity quickly within the property. Once you have a greater understanding of what equity is and why you should build it, you can go about taking the necessary steps to take advantage of those benefits.

On a very basic level, home equity is the amount of value that you have built up in the home that is not tied up with your mortgage or other expenditures that are associated with it. After all, unless you own the home outright and do not have a loan on it, you are only going to be a partial owner. The other owner is going to be the bank or anyone else that has an interest in the property. You may be the individual that is listed on the title of the property, but until the loan is fully satisfied, you are going to have limited equity within it.

The equity within the home is usually available immediately upon getting up from the closing table. You can see that immediate equity for a number of different reasons. The first way that it is typically seen is because of the down payment that you make on the property. For example, if you buy a property for $100,000 and put 20% down, your equity is going to be $20,000. That is, of course, assuming that the property is worth what you are paying for it.

A second way that you may experience some form of immediate equity is if you were able to buy the property at a price that is lower than what it is worth. Doing so can be somewhat tricky, but it is possible and the benefits can be enormous. You can use that immediate equity in a number of ways to obtain the property, including coming in with a smaller down payment. In addition, you can use the additional equity to be a catalyst of building up more equity within the home, using the techniques that are discussed in this publication.

You may also find that the equity within the home changes over the course of time, even if you aren't actively doing anything to change it. This may also take place for a variety of reasons, and it is something that can benefit you, if you take advantage of it.

One of the primary ways that equity is built within the home is if the value of the home increases. Traditionally, real estate has been one of the most beneficial investments, simply because the value does continue to increase consistently over the course of time. Admittedly, there will be times when you see a drop in the value of the property, but it is more likely that you will continue to see positive gains as the years pass. You simply need to roll with the punches, so to speak, and wait for the positive gains to occur.

Another way that equity is being built, as you continue to own the home, has to do with paying the home mortgage regularly. Even though you may not be actively trying to build equity within the property, paying your mortgage is building equity within it, although it is doing so on a limited basis. When you first begin to pay the mortgage on the property, the majority of the mortgage payment is going to go toward the interest. As you continue to pay on it and the years pass, however, an increasing amount of your mortgage payment will go toward principle. In either case, any principal balance that is being paid is building equity that can benefit you. We will discuss more about how to pay your mortgage smartly in this publication.

Why Should You Build Home Equity?

In the previous chapter, we discussed some of the different benefits of building equity within the home. In many cases, it involved using the equity in some way or another, either as a way to upgrade to a better home or perhaps as a source of funding. When you break it down on a smaller level, however, it becomes clearer that building equity within the property is one of the smartest things that you can do.

The primary reason and benefit of building equity within the home is the fact that it builds your net worth. This may not seem like it has very much value at this time, but as you increase your net worth, you are actually increasing your options. Most people tend to leave the equity within the property and to simply let it ride, perhaps even for a lifetime. Others, however, find that the equity eventually will come in handy for some important reason, such as putting a child through college or perhaps paying for retirement.

It doesn't matter why you are considering building equity within the home, it is important for you to take your best step forward and to do it. As you continue to build more value in the home, and increase your equity, you will find that the benefits come your way.

4. How to Build Equity by Paying off the Mortgage

We will discuss a number of different ways that you can build equity within a home in this publication. One of the easiest, and perhaps the most productive ways for you to do so, however, is to simply pay the mortgage. If you pay on the mortgage using the regular payments, you will slowly build equity over the course of time. If you modify the way that you are paying your mortgage, however, you will find that you are building equity much more quickly as a result. Here are a few different methods that you can use to pay off your home and to build equity within it, as quickly as possible.

You should also regularly request something from the bank that is known as an amortization schedule. As you continue to make an effort to pay down your mortgage more quickly, it will show where you stand, including your equity and how much headway you are making. Although it is not necessary for you to have these numbers in front of you, it can be very motivational when you're trying to put forth the effort to get it paid off as quickly as possible.

It is also not uncommon for you to be moved from one financial institution to another, as you are paying off your mortgage. This is a common practice in banking, but it becomes even more common when you are paying on your mortgage quickly. The bank makes money because of the interest that they charge and the fact that you are paying regular interest, each and every month for up to 30 years or longer. If they recognize that you are paying the mortgage off more quickly, they may sell your loan to another financial institution. It will not change the terms of your loan, but you will need to write your checks to someone else.

Pay Additional Money

The easiest way for you to build equity within the home, by paying down the mortgage, is simply to pay additional money on it. When you first start paying the mortgage, the majority of your monthly payment is going to go toward interest charges and only a small amount will go on the principal balance. Each month that you pay, a little bit more is going to go on the principle, but you are still going to be paying a lot on interest.

If you are able to make extra payments on your mortgage, even if it's only adding a few dollars to it every month, that money is going to go directly toward the principal balance. This has the effect of paying off the mortgage more quickly, but it also has an additional effect as well. When you pay extra money on your mortgage payments, the money will snowball and you will quickly be paying more on the principal balance, even on your regular payment.

The amount of extra money that you pay on your mortgage is really going to depend upon you. Some people take a look at the amortization schedule to see how much of their regular payment is going toward the principal balance, and they match that payment every month with additional money. You may also find that making a double mortgage payment every month is a possibility as well. It really is simple economics. The more you pay on your mortgage, the faster it gets paid and the faster you get equity built up in the home.

Pay Your Mortgage for Fewer Years

Most people who get a mortgage are going to do so for a longer amount of time. It is not uncommon for a 30 year mortgage to be written by the financial institution, but there are benefits to seeking a shorter term mortgage. In fact, if you sit down with the bank and go over the numbers, you may actually find that you are able to reduce the terms of the mortgage to a 15 year loan without actually having to pay a whole lot more in the monthly payments.

When you have a shorter term loan, it also forces you to make larger payments. For some individuals, it makes sense that they would do it this way, because they want to pay off the loan as quickly as possible. If you have the money available every month and you are disciplined, however, it is not really necessary for you to refinance in order to get the benefits. Simply pay the loan as if you were paying on a 15 your mortgage rather than a 30 year mortgage. The end result will be the same, but you will save the money that is associated with refinancing.

Pay More Frequently

A third option of paying your mortgage off quickly, and building up equity within the home quickly as well, is to pay the mortgage on a more frequent basis. Most mortgages are set up to be paid once a month, but there are benefits to paying it every two weeks instead. In fact, paying your mortgage every two weeks rather than paying it once a month could easily shorten a 30 year mortgage to a 24 year mortgage.

The primary reason why paying biweekly is going to benefit you in this way is because there are 52 weeks in a year, which would actually be 13 months rather than 12. In essence, you are paying an extra month's mortgage every year. It really accomplishes the same thing as the first two suggestions, but some people find that it is easier to pay every two weeks rather than to pay extra money each and every month on their monthly payment.

Some financial institutions are going to set up the biweekly payments for you automatically if you request it. There are also some third-party services that will do it for you as well. As long as you are disciplined and are able to make the payments every two weeks, it is best if you do it on your own. In that way, you avoid any extra fees that may be associated with paying your mortgage in this way. Just make sure that you get two weeks ahead of your mortgage early so that you avoid any late fees.

Consider Refinancing at a Lower Interest Rate

One other option that is available to you is to refinance your loan at a lower interest rate. This is something that may be available if you did not refinance your home in recent years. In fact, as of the writing of this publication, interest rates are still very low in comparison with where they were just a few years ago. You can take advantage of those lower interest rates by refinancing now and lowering your monthly payment.

Of course, just lowering your monthly payment by refinancing is not going to automatically build equity in the home. What it can do, however, is give you the opportunity to pay extra on your mortgage without actually increasing your monthly mortgage payment amount.

Before you refinance, make sure you look at the numbers carefully. In some cases, you may reduce your monthly payments by refinancing, but it is going to be a wash because the cost of closing the new loan is going to be more expensive than the savings you experience. Go over these numbers with the bank before you sign on the dotted line.

5. Home Improvements That Build Equity

In the previous chapter, we discussed the possibility of paying extra on your mortgage or modifying your mortgage to build equity in the home quickly. Another option that you may want to consider is making changes to the home itself, in order to build equity.

In fact, this is something that you can do to build up the money that you can get out of the home very quickly. It is important to understand, however, that not all home-improvement projects are going to provide the same level of benefits. In some cases, you may even end up losing money in equity, by doing the home improvement project. It becomes somewhat of a balancing act and you need to focus more on the equity of the home than what you want to get out of it in the long run. Here are some of the more popular options that are available for doing home improvements that will build money in the home quickly.

Kitchen Remodeling - Although you can do work in any room of the home, one that you would want to consider when it comes to home equity is the kitchen. You really need to take a look at the kitchen and see what needs to be done in order to improve it. In some cases, it could involve replacing the kitchen cabinets or, at the very least, re-facing the cabinets. You can also upgrade the appliances and the countertops as well. If you do the kitchen remodeling properly, you will get back the majority of the money that you put into the project, in equity. If you do it perfectly, you will build equity quickly.

Entry Door - Another option for building equity in the home is to replace the front door. This is a relatively small project in comparison with some of the other projects that we're going to mention, but it can have a significant benefit when it comes to your return on investment. You may spend approximately $1000 to have someone replace the door for you, or if you can do it yourself as a weekend project, it can be done for much less.

Garage Doors - Replacing the garage doors is something that may be necessary, depending upon their age and condition. In many cases, you are not going to get back 100% of the cost of replacing the garage door, but you will get back the majority of it. Of course, if you are able to do the work on your own, you will likely recoup every penny and more.

Siding - How does the outside of the home look? One option that you may want to consider is replacing the siding on the home, in order to freshen it up. Of course, replacing the siding is going to be a significantly large project and you may spend well over $10,000 for an average home. If you are able to do some of the work on your own and you choose an economical siding, you can recoup the money and build equity at the same time.

Bathroom Remodeling - Another room in the home that can be remodeled to build equity within the house is the bathroom. You should opt for projects within the bathroom remodel that would cost less in the long run, but still add value to the home. Some of the options that you may want to consider include replacing the sink, countertops and toilet. Making economical choices in the materials that you use will help you to build more equity.

Finished Basement or Attic - Depending on your area and what you may have available, it may be possible for you to renovate the basement or the attic and turn it into additional living space. Again, you want to make sure that you are choosing economical options when it comes to the upgrades. Additionally, any work that you do on the project is going to ultimately help you to save more money and build more equity in the home.

Window Replacements - One other option that you may want to consider is replacing the windows in the home. Although this option is not typically going to build positive equity, it can make your home more appealing and much easier to sell. If you make the right choice in replacements, you will likely recoup the majority of the money from the project.

These are just a few of the options that you have for building equity by doing home improvement projects. If you're going to hire out all of the work, it is important for you to look at the options that are available and to choose what would save you the greatest amount of money. Of course, it is always best if you're able to do the work on your own because you will maximize your savings and build the most equity within your home very quickly.

6. Maintaining the Home and Curb Appeal

We have discussed a number of different ways that you can build equity within your home. Not only is it possible to do so by improving the home and doing major upgrades, it is also possible to build equity by paying down your mortgage as quickly as possible. In this chapter, we are going to take a step away from those factors and talk about something that is usually referred to as "sweat equity". When you understand the factors that are involved in this type of equity, you can really build your money quickly.

Of course, we would all like to be able to build equity because we have purchased at the right time, by buying a home at a low price and seeing it increase in price rapidly because of the current market. Unfortunately, counting on that type of equity is somewhat of a gamble and many people have lost as a result of putting all of their eggs in that one basket. When you maintain your property properly, however, you are going to end up getting more in return from it and it will benefit you in other ways as well.

Part of sweat equity has to do with the major changes that take place in the home, such as those that we described in the previous chapter. It is possible for you to enjoy this type of equity without lifting a finger. You can pay somebody to do the work for you, but you are also missing out on one of the largest components of being able to get more out of the property that you own. If you truly want to take advantage of what sweat equity has to offer, you are going to be putting in the hard work yourself and doing so consistently.

Admittedly, some of us have a difficulty swinging a hammer and we may not be able to take care of a lot of the maintenance of the home at this time. That doesn't mean, however, that you are beyond learning how to do so. There are plenty of courses that are offered through local hardware stores, such as Home Depot and Lowe's that allow you to learn how to manage your home and care for a lot of the day-to-day maintenance that may need to be done.

You may also be able to learn by doing, which is perhaps one of the best ways for you to understand how to work on the home properly. Once you accumulate a few of the basic tools that are necessary for doing it, you would be surprised with how quickly you can learn to care for almost any maintenance project that may present itself. If you run into something that you have difficulty with or if you have any questions as to how something can be done, the answer is usually as close as the Internet. You would be amazed with what you can learn by watching a few YouTube videos on any subject about home maintenance.

What Can You Do with Sweat Equity?

As we discussed previously in this publication, equity has to do with the part of your home that you actually own outright. If you are like most people, you may own a portion of your home that is associated with your down payment or with the amount of principal that has been paid over the course of your previous mortgage payments. Although you may own a small amount of your home, the rest is actually owned by the bank.

When you are able to roll up your sleeves and to do some work on the home yourself, you save an amazing amount of money. Yes, it may take some time for you to get to the point where you are seeing a positive return for the time that you are spending on the home, but it will be well worth it in the long run. All that is going to be necessary is for you to purchase the tools that you need to do the project, which is a one-time investment, and you will need to pay for any supplies that are necessary to get the project done as well. Since you are not paying for an outside contractor to do the project, all of that money gets build up in equity and it really adds up quickly.

What are some of the things that you can do to build sweat equity in the home? Actually, any project that you can do around the home is likely to be beneficial as far as equity is concerned, provided you can do the work yourself. For some individuals, it is a matter of painting the home, either on the inside or the outside and that can help to add to the curb appeal, as well as to the overall equity. You might also want to consider redoing the floors, either by adding some wood flooring or perhaps restoring the wood flooring that is in the home. These are long-term projects and they can make a difference in the percentage of your home that you own.

If you have done the majority of the work that can be done inside the home and you really want to get aggressive with your home maintenance, you can look to the outside of the home as well. The exterior property is often overlooked, but it really can add to the living space if it is done properly. Building a patio or an outdoor fireplace is an excellent way for you to add sweat equity to the home and to improve your living conditions as well. For a larger project, you may want to consider a summer kitchen.

The benefits of sweat equity extend far beyond the fact that you own a larger percentage of your home. If you live in the home and are upgrading it on a regular basis, you will be able to enjoy those upgrades with your family and friends as well. It really is a win-win situation, and it is one that you would want to consider if you are interested in building equity in a very fast manner.

How Can You Build Equity with Curb Appeal?

Another factor that you can consider for building equity is to increase the curb appeal of the home. Doing so typically involves improving the home in a way that makes it look better, but does not necessarily change the functionality of the home to a large extent. The following are some of the things that you can do to improve the curb appeal of the home. When you do so, you will enjoy the home more and it will also make it more attractive when it is on the market.

Paint the Exterior - If it has been a while since the exterior of the home had a fresh coat of paint; this may be the first place that you want to start. Try to choose something that is fairly neutral, yet stands out to a certain extent when you compare it to the neighbors’ homes. Of course, you may need to stick within the parameters that are assigned by the homeowners association, but you will find that they typically give plenty of options for you to consider.

Make sure that you focus, not only on the larger walls of the home, but also on the trim as well. In fact, giving a fresh coat of paint to the trim is a quick and fairly easy way for you to boost the curb appeal of your home significantly. You may also want to consider painting the front door or the trim around the windows. It can really make your house pop.

Landscaping - Another way for you to build the curb appeal of the home and to increase the equity is to do some landscaping. Adding a few bushes, a tree here or there, and some flowerbeds can really help to dress up the outside of your property and make it look fantastic when it is viewed from the road.

Of course, landscaping is not only about planting new plants, it is also about caring for the plants that already exist. Make sure that you set aside the time to do this every week. It will wind up paying off in the long run.

Interior - Although the bulk of the projects that are done for curb appeal involve the exterior of the home, it is also important for you to consider the interior of the home as well. If you are actively showing the home and really want it to sell quickly at a price that allows you to walk away with money in your pocket, add a fresh coat of paint to the walls and simplify the home so that it is not cluttered. Paying attention to the interior of the home helps you to build equity and will help the property to sell quickly.

These are only a few of the options that are available for maintaining the home and building curb appeal. It all involves work on your part, however, but that work is going to pay off when you see the equity in your home build steadily over the course of time. If you have a home that has been neglected, putting some sweat equity into it will help you to build equity quickly, and it is one of the best things for you to do to increase the percentage of the home that is owned by you.

7. Building Equity in the Right Market

There are many different ways to invest your money, but owning real estate has been one of the most beneficial ways on a consistent basis to build your money quickly and steadily. Of course, there are a number of things that need to be considered because it is not only possible to make a wise investment when you purchase a home; it is possible to make a poor investment as well. In this chapter, we are going to consider some of the factors that make it possible for you to buy a home and to ensure that you are going to be able to make a profit by building equity quickly.

One important thing for you to do before you purchase a home is to check your credit and to make sure that you are building it up over the course of time. Most of us have difficulties with our credit at some time or another, and it may be possible that your credit has dipped because of missed payments or perhaps because of other bad marks against it. Before you go into the bank to try to get a loan for a home, make sure that you are doing everything possible to clean up your credit history and to get your credit score to a more respectable level.

You may also find that there are problems on your credit report and inaccuracies may exist that need to be cared for. If that is the case, it is important for you to care for them right now rather than waiting to see if they fall off. Even if you make a change to your credit history by getting the company to remove some inaccurate information, it may still be several months before you see a movement in your credit score. The only other option is to pay for a quick adjustment in your credit.

It is impossible to determine if the market is going to be right for you to purchase a home or not. There are some indicators, however, that may make it possible for you to purchase a home and to be confident in the fact that you can build equity quickly. One of the things that you can do is to purchase a home when the market has been in a recent low and is beginning to pick up steam again. You may also want to consider purchasing a home in a market that is seeing some significant growth. You can research that information online.

Be careful not to fall into the trap that many homeowners fall into, of purchasing a home that is too much for them to afford. As a general rule, take your annual salary and look for a home that is approximately 2.5 times that number. If at all possible, you should opt for a home that is well within your affordable range, so that you don't get blindsided by a financial downturn in your personal life. Take a look at all of your bills, including your personal debt and see what you are truly able to afford. Never step outside of the boundaries or you may end up in a very difficult situation.

Some people purchase a home to make some quick money by purchasing it at a low price, doing some repairs and then putting it back on the market again. Although it may be possible for you to do this if you own more than one property, most people are going to need to live in the home while they are repairing it. That is why it is important for you to be prepared to stay in the area for a few years, when you do purchase a property. If you are able to buy it, fix it up and flip it in a short amount of time, that's great but it doesn't always work that way.

When purchasing a home, there are going to be some costs that are associated with doing so. Not only are you going to need to pay the price of the home, you are also going to need to pay some closing fees, and eventually, you are going to be paying interest on your monthly payments. It is important for you to go over the numbers with a fine tooth comb and to choose the one that is going to be right for you. In some cases, putting more into the closing by paying for additional points will get you a lower interest rate that can save you money over time. Be cautious that you are actually able to recoup the money, however, if you do pay more of the closing costs.

Finally, make sure you know what you are doing when you purchase a home or at the very least, hire somebody that can help you with the process. This would include hiring somebody that can inspect the home before you make an offer on it. Of course, some banks are going to provide a home inspection on their own, but it is always best if you pay for one out of pocket for the assurance that you are getting a complete appraisal of anything that may be wrong with the property.

These are just some of the factors to consider when building equity in a home by making the right choices before you purchase it. Ideally, you would want to purchase the home at a low price and sell it for a higher price in a short amount of time. When you make the proper decisions ahead of time and buy a home that lends itself to that prospect, it is truly possible to build equity quickly and to cash in on it quickly as well.

8. How to Deal with Negative Equity

Ideally, you would want to purchase a home that already has equity built into it, and as you continue to work with the home and to pay on the mortgage, the equity would continue to grow as well. Unfortunately, recent events and the economic downturns of years past have taught us that it is not always possible to live life in such a dream world. At times, the equity that you have built up in the home will begin to go away as the value of the home drops in a poor market.

It is not only possible to lose equity in the home because of the economy and other uncontrollable factors, it may be possible that you could put more in the home than what it is worth. When this is the case, you have what is known as "negative equity", and the numbers that are shown in equity are actually working against you, rather than working in your favor. It certainly can be difficult if you find yourself in that situation, and it may feel as if you are simply throwing your money away, rather than getting anything out of your home and all of the effort that you are putting into it.

You might be surprised to learn that it is very common for individuals and families to deal with negative equity in their home today. In fact, it is estimated that approximately one out of every six properties in the United States is underwater, dealing with a problem with negative equity. The number is even higher when you consider the families that purchased their home within the past several years, simply because the values of property dropped so quickly and continued to drop for a very long time.

In addition, there are certain types of loans that can quickly get you in trouble if you are not paying attention to the terms when you sign on the dotted line. These loans may include zero interest, or perhaps they may balloon after a short amount of time. Before you know it, your small payments have become much larger and you're now finding it difficult to make the month-to-month payment on a consistent basis. In fact, many families have lost their home as a result of these types of loans, which is why they are not very common today. In fact, some of those loans are considered to be predatory lending and they are not only frowned upon, they are the source of criminal prosecution.

One thing to watch for when it comes to the equity within your home is the prices of homes in your local area. That is typically going to be the indicator as to how much you are able to get out of your property if it were to go to market. If your neighbors find themselves in a situation where they need to get out of their home quickly and they are willing to walk away from it for a very low price, it can actually hurt the equity that you have in your property because it lowers all of the home values in the area. It really is a precarious situation, but it is not one that is uncommon.

Fortunately, it is possible to work your way out of a problem with negative equity, in most cases. One of the things that you can do is to continue to work on your home and to build up the equity in the best way that you possibly can. At this point, it really becomes a waiting game and it is a matter of trying to wait out the market until it sees a positive return. It may seem as if you are treading water at this point, and to a certain extent you are, but the work that you put into your home is not likely to be in vain. As long as you're making smart decisions in the work that you do, you are likely to see a positive return at some point in the future.

It may also be a good time for you to consider the possibility of getting out of the home and trying to get into something else. Dealing with the problem with negative equity makes it difficult to do so, but if you put your home up on the market, even if it is a matter of breaking even, it may get you out of that situation and give you the opportunity to get into a situation that is better. You really need to look at all the factors that are involved, including the possibility that it is just a temporary dip in the market that is causing the home prices in your area to fall. It also depends on your circumstances and the possibility that you may or may not be able to wait to get into a new property.

Many of us depend upon the equity in our home as a form of long-term savings, so having negative equity can be a real problem when it comes to putting money in our pocket. One of the options that you may have available in this regard is to purchase a second property, depending upon your circumstances. Rather than simply waiting for the negative equity in your first property to turn around, you can buy a second property that has good prospects for equity and rent the first one. More than likely, you will be able to cover the mortgage, taxes and other expenses for the home and find the right renter. It gives you the opportunity to get into a home with equity, without simply dropping the old home and taking a loss.

If you find yourself in a situation where you are dealing with negative equity and you're unsure what to do, it is best if you get professional advice. Hire somebody that understands the market in your area and the options that may be available to you, including how they are going to affect you and your credit. At times, moving from the home and taking a temporary hit on your credit may be the best option that you have available, but at other times, waiting it out may be the thing that you should consider. It is always possible to deal with a problem with negative equity, but the solution is not typically one that is easy.

9. Home Equity FAQ

The information that was provided in this publication can help you to build up equity quickly and easily in your home. In essence, it allows you to own a larger portion of your home and to take advantage of what that extra money has to offer. It is likely that you also have additional questions about home equity and how to build it properly. In this chapter, we will consider some of the more common questions that are asked about building home equity, for your convenience.

Q: What is the quickest way to pay off a mortgage?

A: We discussed a number of different ways to pay off the mortgage quickly. It included paying additional money on your monthly payments, making payments every two weeks instead of every month, refinancing to get a lower interest rate and refinancing for a shorter term. Any one of those options can help to cut down significantly the amount of time that you are paying the mortgage, and can quickly build equity within the home. It is a combination of all of those, however, that can really make a difference in the equity of your home. Do whatever you can to pay extra on the home, combining all of the methods discussed above to provide the greatest benefit.

Q: Will I recoup all the money that I invest in the home?

A: Although there are some types of home improvements that will allow you to see positive equity within the home quickly, not all of them are going to pay off as quickly. At times, it is a matter of choosing the ones that give you the greatest return on investment, which may be in the range of 75% to 80%. If you want to do home improvements and immediately see an increase in the equity, you need to work on the project yourself to cut down on the labor costs. You should also be thrifty when it comes to choosing the items that are used for home-improvement.

Q: How can I sell my home quickly?

A: If you took the advice that was provided in this book and maintained your home and build up the curb appeal, you have taken a large step toward selling your home as quickly as possible. Selling the home is one of the easiest ways for you to get the equity out of it. Focus on making the home inviting for the buyer, and work on providing proof that it offers benefits to the individual purchasing the property. The greater the curb appeal, the easier it will be to sell your home.

Q: How can I get the equity out of my home?

A: There are a number of options available to take advantage of the equity that is built up in your home. As was mentioned above, the easiest way is to sell the home and to walk away with some cash in your pocket. You can use that money to make a down payment on a larger home, or for any purpose that you may need. You may also want to consider the possibility of taking out a home equity loan or a home equity line of credit. It gives you access to the money associated with the equity in your home, and as you pay the money back, you are regaining the equity once again.

Q: Is it always worth it to refinance?

A: There are some definite benefits to refinancing your mortgage. One of those benefits is that you can sometimes get the mortgage at a lower interest rate, so your payments are going to be lower. There is somewhat of a balancing act, however, and you need to pay close attention to how much you are spending on closing costs and loan fees. If you are spending less than what you will recoup by paying a lower monthly rate, you have the opportunity of building equity. Of course, you would want to continue to make the same payments as you did before you refinanced, even if the monthly bill is lower. Paying more on your mortgage is the best way to build equity.

Q: Will the market rebound to former levels?

A: If you purchased a home at the height of the real estate bubble, it is likely that you are now living with some significant negative equity. There is always a possibility that the equity will be regained again, but more than likely you are going to end up having to take a loss at some point or another. You can either take the loss now, or you can rent the property and purchase a second home to build equity in it. Not everybody has that option, but it is something that you may want to consider.