Free Home Values are Useful in Financial Planning

By Karen Lawson
Home Worth Columnist

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Using free home values can help you get an idea of how much home equity you have, which can help you plan how to make the best use of your equity. Let's consider some ways to use the information provided by free home value estimates.

Home Equity: A Key to Building and Preserving Wealth
Home equity can be a valuable asset if used wisely. To estimate how much home equity you have, you can get a free home value estimate online. Next, subtract your mortgage balance. The result provides an estimate of your home equity. Home values are subject to local trends, individual property conditions, and environmental influences. Actual mortgage payoff figures can vary, so it's important to remember that free home values are estimates only.

Reduce Debt, Increase Living Space, Expand Your Horizons
Home equity financing can provide a great way to eliminate high interest rates associated with credit cards and consumer installment loans. A free home value estimate can help you decide how much you can borrow for debt consolidation. If you've outgrown your living quarters, or want to update your home with modern features such as new appliances or an outdoor living area, free home value estimates can give you an idea of how much you can budget for remodeling. Home equity financing options such as home equity loans and lines of credit can provide the cash flow you need during remodeling and renovation projects. You can also use your home equity to prepare for a career change through education and vocational training, or start your own business. Consulting a financial advisor can help you determine how using home equity can improve your quality of life while providing financial security.

About the Author
Karen Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.