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This Old House - Do-it-Yourself

4 Different Ways To Tap Your House for Cash

Written by Posted On Monday, 12 February 2018 16:51

If you own property then you should know that there are different methods available to you should need to tap your house for cash.

The American dream is to own a beautiful home with the white picket fence. But in today's economy, you can have your dream home and make money off it too! It's no secret that American's are looking for ways to supplement their income, through a binary options broker or dabbling in the stock market.

No more worrying about property taxes, utilities, mortgage payments... Why not make money from your home right now?

Read on below to find out how to fund your pockets with your home:

1. Refinance, Like Now.

wasteful spending habits

This advice cannot be taken lightly. With interest rates continuing to rise and 3 or 4 hikes likely this year, you should look into refinancing your mortgage immediately. The savings and cash you would get can be huge.

This may be the most sound advice any homeowner can hear. Even if you recently refinanced, it might be worth looking into another quote as they take only a few minutes to check. LendingTree could help you refinance your mortgage at a significantly lower interest rate - Let's say your interest rate decreased by 1%, you can save more than $100 a month on a $200,000 mortgage. That comes out to $1,200 in extra cash for you at the end of the year and $6,000 every 5 years!

2. Rent Out Your Spare Room!

house sitting

If you have an extra room in your house, you can earn money by hosting guests on Airbnb.com. Many homeowners have started getting fast cash by listing their homes and open bedrooms to travelers looking to book through Airbnb across the globe.

This method is useful as you can meet some really interesting people from across the world and make money at the same time. With a little bit of traction, you easily earn extra money that can go towards your mortgage. If you need more help on this method, you can check out the AirBnb website for more information regarding hosting guests.

3. Time To Move?

apartment

If you've been living your house for some time, then it's likely appreciated in value. If you are thinking about moving, then now is the time to do so. You can opt for a smaller home in a cheaper area and bank the cash for the sale of your property.

Also act now as fewer people are buying homes, as indicated by a research done by USA Today. More Americans are opting to rent over buying, and Millennials seem to value experiences over ownership. It's best to make the move sooner rather than later if you have been seriously considering parting ways with your home. Millennials also seen to be really keen on being entrepreneurs, as noted by this popular Best Entrepreneur Books 2018 and make $200 fast articles.

4. Get A Hard Money Loan

Best Money Making Apps for 2018

Hard money is a way to borrow without using your typical mortgage lenders. If you are in need of cash, then you can put your property up as collateral and receive a loan from individuals or investors. This is typically useful if you're in a crunch and need a loan quickly.

This is useful for those who don't have the best credit score or a positive history of borrowing responsibly. Why? Well, because if you aren't able to repay the loan then the house is the collateral. The hard money lender lends to you based on the collateral securing the loan, and if anything goes wrong they would get their money back by taking your home and selling it.

This way of seeking cash is useful for those who cannot get traditional funding as it's flexible and done fairly quickly. It makes sense for short-term loans that you know you'll be able to repay. If you wanted to find a hard money lender, then you'll need to connect with investors. Find out who in your area provides this service and reach out to a few to discuss your options.

For you: There are a lot of ways people make money now-a-days, from binary options brokers to flipping homes, how will you earn that extra buck? Do any of these money making methods appeal to you? Why or why not?

This post was also seen on My Millennial Guide.

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