Hello, anybody out there? I mean besides my mom, who probably reads this just so she can correct my mistakes (she's worried I'm becoming smarter than her)!
Blogging, yes I said blogging, is a two-way street. I post and you comment, so lets get the ball rolling... I guess I should pose some questions. Lets talk about home equity.
According to the website Zillow.com, I've gained about $20,000 in value since I bought April 2005. Now weather or not Zillow is an accurate estimate is debatable, but I thoroughly reported that very site and wrote a story about it. What I found is that Zillow can be somewhat accurate depending on the area. It works pretty good for metropolitan areas, which of course, Minneapolis is. Now that "zestimate" doesn't account for improvements or other things that will increase or decrease the value of my home, such as the new perennials I just planted or the non-conforming bedroom that was added to the basement. But, the value they come up with is based on comparable sales, tax data and other data from city and county records.
So what if my home really has increased in value by $20k? Should I refinance and take out a home equity line of credit? I could use the money to pay off some credit card debt, my car and replace the old furnace in my basement. That sounds wonderful! But I'm sure there are people who'd advise against it for whatever reason.
What do you think?