EasyKnock

Sitting On A Wealth Gold Mine? Here’s How To Access It

By Tom Burchnell

You may be thinking that you don’t have any wealth to speak of, but if you own your own home, it’s likely that you have an asset that could provide you with access to the wealth you’re seeking. How do you get to it, though?

Your Home is An Investment

A house truly is an investment. One of the main reasons people decide to buy their own home is that they want to invest the money they spend every month for a place to live in their own home rather than giving it to a landlord. The problem with investing your money in buying a house is that it’s tough to get access to that wealth once you’ve sent it off in the form of a mortgage payment.

Converting Your Equity

There are a few options for converting your home equity to access your wealth.

  • Home equity loan
  • HELOC (home equity line of credit)
  • Reverse Mortgage
  • Cash-Out Refinance
  • Selling your home traditionally
  • EasyKnock’s Sell & Stay

Getting to your equity can be tricky, and most of the equity tapping options above don’t actually give you your equity; they simply loan you money with your home equity securing the loan.

In order to access your wealth and equity, you traditionally have to meet certain credit requirements, plus you’ll probably have to pay interest in order to get your own money. That doesn’t seem quite right, does it?

Selling is Nearly the Only Way to Actually Access Your Wealth

A cash-out refinance allows you to refinance your home and take out some of the equity you have built up in cash. This means that you can access your wealth without paying interest on it, but you will have to pay interest on the new, higher mortgage balance. You’ll also need to have a decent FICO score and a steady source of income to pull off a refi that doesn’t come with worse terms than your original mortgage.

If what you really want is to access your wealth and equity rather than a loan that you’ll have to pay back with interest, you may have to consider selling your home. In the past, this meant that you listed your home with a real estate agent and they helped to get it sold, or even that you listed your home for sale by owner. Once your home sold, you’d have to move and find a new place to live. With Sell & Stay, the hassles of listing your home and moving are both eliminated.

Sell & Stay Lets You Sell Without Uprooting Your Life

When you need access to your wealth and home equity, you don’t want to pay interest on it, and you don’t want to move, Sell & Stay might be the perfect solution to your problem. You simply let EasyKnock buy your house and lease it back to you so that you can convert your equity to cash. From there, you’ve got the flexibility to choose what you want. You can continue leasing your home, or if you decide you want to keep your home, you can repurchase it later. If you decide you want to move somewhere else, you let EasyKnock sell your home and you receive any remaining amount and any appreciation.

If you want to access the wealth you’ve been sitting on, contact us here at EasyKnock to see if Sell & Stay is right for you.

Key Takeaways

When you’re looking for ways to get cash out of your home, there are quite a few options to look into. Most of those options can be difficult to navigate, expensive, and require you to move. EasyKnock’s sale-leaseback solutions are flexible and a great way to get access to the cash you need. Consult a financial advisor to see which solution might work for you.

Topics:
EasyKnock
Home Equity
Sale-Leaseback
Tom Burchnell Director of Product Marketing for EasyKnock, licensed real estate agent.

This article is published for educational and informational purposes only. This content is based on research and/or other relevant articles and contains trusted sources, but does not express the concerns of EasyKnock. Our goal at EasyKnock is to provide readers with up-to-date and objective resources on real estate and mortgage-related topics. Our content is written by experienced contributors in the finance and real-estate space and all articles undergo an in-depth review process.