This is a sponsored post curated by me on behalf of Capital One. All opinions are 100% mine – however, I have always been a huge Capital One fan and hope to use their Home Equity products soon!

Buying your first home is a top goal for many millennials. There are numerous perks of being a homeowner, such as the infamous mortgage interest deduction, and my favorite perk, building wealth over time while keeping a roof over my head! (talk about killing two birds with one stone, although I would never hurt a bird). This wealth building strategy is referred to as your home’s equity.

What is Home Equity?

Your home’s equity is the difference between the current value of your home and the remaining amount of your mortgage. For example, the current value of your home is $300,000 and the balance of your mortgage is $200,000. This means that there is $100,000 of equity in your home. This equity will continue to build as you make monthly payments and as the market value of your home appreciates, and it’s considered to be an asset.

How does home equity work?

Using one of Capital One’s super easy to use calculators you can determine how much equity you can pull out of your house. Once you determine this amount, you can decide if a home equity line of credit (HELOC) or a home equity loan is best for your needs. If you know exactly how much money you will need, a home equity loan may be best, and if you are not sure exactly how much money you will need and would prefer to have access to a line of credit that you can use sort of like a credit card, a home equity line of credit will be best. And, if you are still not sure which option is best for you, the lender will be able to help you make the best decision to support your financial goals, or you can check out Capital One’s handy comparison chart.

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How much will it cost you?

Believe it or not, using your home equity to access funds can be cheaper than other lending options. Some companies will charge a closing cost on the loan; however, Capital One does not have any burdensome fees. capitalone.com/home-equity.  Your interest rate will vary based on if you select a home equity line or a loan and your credit score. When you begin making payments, just like your mortgage, the payment will consist of a principal payment plus interest. This new payment will be in addition to your current mortgage. So only borrow what you can comfortably afford to pay back in addition to your mortgage.

Are you eligible?

Your eligibility will be determined based on the current value of your home, the amount of equity in the home, how much you want to borrow, and of course your credit.

Thanks to technology, accessing your home’s equity and determining your eligibility is easier than ever. It’s super easy to access the application online at no charge, get a customized rate and estimated loan amount without no impact on your credit (win-win situation!)

Whether you’re remodeling your home or consolidating debt, Capital One is here to help with simply smarter tools that help you choose the right option for your situation. I have not personally used Capital One’s Home Equity products, however after using their calculators and determining how much equity is in my condo (cha-ching!), it’s something I will be looking at in the near future to begin purchasing more properties!

You can get your customized rate and loan amount, with no impact to your credit score, by visiting capitalone.com/home-equity.