Managing Your Assets

Thursday, March 1, 2001

Gy FO POP PPP OPPO ONS Managing Your Assets (NAPSA)—When it comes to managing finances, surprise expenses such asrepairing a deck, supplementing college tuition, or installing a new hot water heater can cause homeownersto struggle to find the funds, or make a payment decision they won’t later regret. However, a homeowner may already be living in an important resource that can provide borrowing options and potentially help save on taxes. Homeowners can turn to the equity in their homes to fund unexpected expenses or consolidate personal debt, to fund home renovations or to pay for college tuition for their children. A home equity loan or line of credit that leverages the asset buyers have established in their home can make additional resources available, provide tax benefits, and offer peace of mind in a financialcrisis. What's the Return on ROI Remodeling Investments? Improvement 88% Minor Kitchen Remodel 84% Two-story Addition 82% Bathroom Remodel 82% Bathroom Addition 76% Family Room Addition 75% Exterior Paint 72% Master Suite 69% Basement Refinish 60% Sunroom 60% Re-roof U.S. average return on investment (ROI) in 2000. Based on resale value within one year of project completion. Source: Remodeling Magazine. @ According to the Census When managed properly, home equity debt can improve a homeowner’s financial condition. percent—owned their homes. This indicates an increase from 64.2 percent in 1990 andis the highest percentage of homeowners since the Census began counting home- account is often tax deductible. Home equity loans may be obtained with no or marginalclos- Bureau, in 2000, more people— 69.8 million householders, or 66.2 ownership in 1890. While more homeowners are becoming familiar with managing their homes as assets, many still haven’t talked to their bankers or mortgage consultants to examine their home asset managementoptions. “Home equity is a powerful tool that is an untapped economic resource for many of our country’s homeowners,” said Doreen Woo Ho, president of Wells Fargo’s National Home Equity Group. Homeequity loans are distinct from other consumer-lending options since only homeowners are eligible to borrow. Since the majority of information required is collected during the mortgage application process, a home equity loan or line of credit doesn’t require the same amountof paperwork. Unlike many consumer loans, interest accrued on a home equity ing costs. “Incorporating home equity into the personal portfolio and managing that asset is a smart and responsible choice for many homeowners,” added Woo Ho. Property values continue to grow throughout the country despite an uncertain economiccli- mate and many lenders are making the processof getting a loan as simple as possible. Many financial services companies offer free financial tools to help choose a term and paymentplan. One popular Web site, www. wellsfargo.com, helps visitors learn more about home equity loans and lines of credit. Personal bankers and mortgage consultants can also provide important information about borrowing options. Potential home equity borrowers should consult their financial advisor to fully gain perspective of whatthe benefits of a home equity account can be.

--- PHOTOS ---

File: 20190731-185614-20190731-185612-52363.pdf.jpg

--- FILES ---

File: 20190731-185612-52363.pdf