Use Home Equity To Create Generational Wealth

Did you know your house can play an important role in building generational wealth? Home equity gradually builds as you pay down your mortgage principal while real estate values rise. Passing this equity to your grown children allows you to leave a financial legacy for future generations. The following tips can help increase your home's equity.

• Try to make a down payment of at least 20% to avoid paying private mortgage insurance (PMI).
• Resist the urge to roll closing costs into your mortgage.
• Make extra payments toward your mortgage principal when possible.
• Avoid tapping into home equity for large purchases, like boats or RVs.
• Make improvements that will increase your home's value.