Guests: Kieth HobartSummaryIn this conversation, Joe and Keith Hobart from Peak Mortgage discuss the concept of home equity, how to calculate it, and the various options available for leveraging it, such as home equity loans and lines of credit. They explore the benefits and risks associated with borrowing against home equity, including the impact on monthly mortgage payments and the importance of understanding debt-to-income ratios. The discussion emphasizes the need for responsible borrowing and the significance of educating clients about their options and potential consequences.TakeawaysHome equity is the difference between what you owe and your home’s value.Home improvements can provide the best return on investment.Cash out refinancing involves refinancing the entire mortgage.HELOCs allow for flexible borrowing against home equity.Interest-only payments can lead to higher long-term costs.Understanding debt-to-income ratios is crucial for eligibility.Market conditions can affect the availability of HELOCs.Education is key to making informed borrowing decisions.Borrowing too much can lead to financial strain.Consulting with a mortgage expert is essential for personalized advice.Thank you for listening to RealTalk! Don’t forget to like and subscribe, and follow Joe on Instagram (@seattlesagent) for the latest videos. And don’t forget to check out The Seattle Experience with Joe Sheldon podcast on YouTube or your favorite podcast app. For more information about Joe, or to work with Joe, visit www.myseattlesearch.com.