A common question by many home owners is “what is home equity?”

Simply put, it is essentially the difference between any existing mortgages (or other encumbrances) and the appraised value of your home.

There are essentially two main ways to access your home equity, without selling your home. One method is to place a mortgage on your home in exchange for the funds that you require that fit within the guidelines of the financial institution or lender. These funds are lump sum amounts and the interest accrues on the total funds acquired from the date of closing.

Many homeowners look to their available equity to help them with their short term financial goals. These can include but are not limited to the following circumstances:

• Debt consolidation

• Vacation

• Weddings

• Investments

• Second home