Pop quiz: How much home equity do you have? If you haven’t done the math in a while, that number may be bigger than you think.

“There’s a record amount of equity out there right now,” says Molly Boesel, a principal economist at CoreLogic, a property information and analytics provider.

U.S. homeowners with a mortgage gained an average of $16,200, or 12.3%, in home equity from the second quarter of 2017 to a year later in 2018, according to CoreLogic’s most recent Homeowner Equity Insights Report.

Want to get your hands on some of that rising value? One way to tap it is with a home equity line of credit, often referred to as a HELOC.

With a HELOC, you can borrow as much of your available equity as you want during an initial draw period, typically around 10 years. You’ll make payments in this phase, but they might be interest-only. When the draw period ends, things get serious.

During the repayment phase, typically 10 to 20 years, HELOC payments include principal and interest. Payments during this time may be drastically larger than your draw-period payments — a shocking change if you’re not ready for it.

“You always want to be careful when you use your home equity as collateral for a loan,” says Rod Raszler, vice president of second trust originations at PenFed Credit Union. “You’ve got to make sure that you’re doing it prudently and factoring in your ability to repay that loan.”

Deciding if a HELOC is right for you means asking questions. You’ll find answers below to some of the most common ones, in 10 words or less.

What exactly is a HELOC? A line of credit secured by your home equity.

How is a HELOC different from a home equity loan, or HEL? HELOCs provide revolving credit, while HELs offer a lump sum.

How much home equity do I have? Subtract your mortgage balance from your current home value.

How much equity do I need for a HELOC? Ideally, more than 20% equity.

How much can I borrow with a HELOC? About  80% of your home’s value minus the mortgage balance.

How much does a HELOC cost? Upfront costs, interest rates and ongoing fees vary by lender.

What’s a good reason to get a HELOC? To finance improvements or repairs that increase home value.

How are HELOC funds accessed? Via an account check or credit card, or online transfer.

How do I find the best HELOC lender? Compare terms, rates and fees, and don’t forget credit unions.

How is HELOC interest calculated? HELOCs typically use a variable rate, but fixed-rate options exist.

How do I get the best HELOC rate? Get at least three quotes and follow these nine tips.

Is HELOC interest tax-deductible? Usually, if used to buy, build or improve your home.

Will a HELOC affect my current mortgage? No, but it could prevent you from refinancing.

Can I use a HELOC as an emergency fund? Yes, but try to avoid it due to foreclosure risk.

Can you refinance a HELOC? Yes, but watch out for early repayment or cancellation penalties.

The article Answers for Your HELOC Questions in 10 Words or Less originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Pop quiz: How much home equity do you have? If you haven’t done the math in a while, that number may be bigger than you think.

“There’s a record amount of equity out there right now,” says Molly Boesel, a principal economist at CoreLogic, a property information and analytics provider.

U.S. homeowners with a mortgage gained an average of $16,200, or 12.3%, in home equity from the second quarter of 2017 to a year later in 2018, according to CoreLogic’s most recent Homeowner Equity Insights Report.

Want to get your hands on some of that rising value? One way to tap it is with a home equity line of credit, often referred to as a HELOC.

With a HELOC, you can borrow as much of your available equity as you want during an initial draw period, typically around 10 years. You’ll make payments in this phase, but they might be interest-only. When the draw period ends, things get serious.

During the repayment phase, typically 10 to 20 years, HELOC payments include principal and interest. Payments during this time may be drastically larger than your draw-period payments — a shocking change if you’re not ready for it.

“You always want to be careful when you use your home equity as collateral for a loan,” says Rod Raszler, vice president of second trust originations at PenFed Credit Union. “You’ve got to make sure that you’re doing it prudently and factoring in your ability to repay that loan.”

Deciding if a HELOC is right for you means asking questions. You’ll find answers below to some of the most common ones, in 10 words or less.

What exactly is a HELOC? A line of credit secured by your home equity.

How is a HELOC different from a home equity loan, or HEL? HELOCs provide revolving credit, while HELs offer a lump sum.

How much home equity do I have? Subtract your mortgage balance from your current home value.

How much equity do I need for a HELOC? Ideally, more than 20% equity.

How much can I borrow with a HELOC? About  80% of your home’s value minus the mortgage balance.

How much does a HELOC cost? Upfront costs, interest rates and ongoing fees vary by lender.

What’s a good reason to get a HELOC? To finance improvements or repairs that increase home value.

How are HELOC funds accessed? Via an account check or credit card, or online transfer.

How do I find the best HELOC lender? Compare terms, rates and fees, and don’t forget credit unions.

How is HELOC interest calculated? HELOCs typically use a variable rate, but fixed-rate options exist.

How do I get the best HELOC rate? Get at least three quotes and follow these nine tips.

Is HELOC interest tax-deductible? Usually, if used to buy, build or improve your home.

Will a HELOC affect my current mortgage? No, but it could prevent you from refinancing.

Can I use a HELOC as an emergency fund? Yes, but try to avoid it due to foreclosure risk.

Can you refinance a HELOC? Yes, but watch out for early repayment or cancellation penalties.

The article Answers for Your HELOC Questions in 10 Words or Less originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Big coastal cities have some of the highest house prices in the country. In comparison, medium-size cities are often relative bargains. But not always.

Each quarter, NerdWallet calculates home affordability for 172 metropolitan areas for which the National Association of Realtors publishes home prices. NerdWallet narrowed its focus this quarter to the medium-size metros — those with populations between 250,000 and 1 million.

The resulting 87 metro areas range in size from Yakima, Washington, with a population of 250,193, to Tulsa, Oklahoma, with 990,706. Other metro areas in this size range include Spokane, Washington; Albuquerque, New Mexico; Omaha, Nebraska; and Toledo, Ohio.

Affordability was calculated by comparing median household incomes and median home prices. An area with high incomes and low home prices is more affordable for buying a home than an area with low incomes and high home prices.

Here are the five most affordable and five least affordable medium-size metro areas in the third quarter of 2018. The rankings were compiled using data from the National Association of Realtors, the U.S. Census Bureau and NerdWallet surveys. Even medium-size cities can boast a touch of Hollywood, so we’ve mentioned movies and TV shows that were filmed or set in each of these.

» MORE: How much home can you afford in your area?

Most affordable medium-size metro areas in Q3

1. Youngstown-Warren-Boardman, Ohio-Pennsylvania

Median home price: $97,600 (national median price: $266,900)

Median household income: $45,382

Principal and interest payment: $407 (10.8% of median monthly income)

Population: 541,926

Youngstown’s metro area was the least expensive housing market among the 172 metro areas for which the National Association of Realtors collects house price data. Low house prices make Youngstown affordable, even though the typical household income is well below the national median of $60,336. Youngstown is roughly midway between Cleveland and Pittsburgh. The city was the filming location for portions of the 1978 movie “The Deer Hunter,” which won the Oscar for Best Picture.

2. Peoria, Illinois

Median home price: $131,300

Median household income: $57,453

Principal and interest payment: $547 (11.4% of monthly income)

Population: 372,427

Roughly halfway between Chicago and St. Louis, this city on the Illinois River had the highest median household income among the five most affordable metro areas on this list. Parts of the 1986 Richard Pryor movie “Jo Jo Dancer, Your Life Is Calling” were filmed in Peoria.

3. Rockford, Illinois

Median home price: $131,600

Median household income: $55,484

Principal and interest payment: $549 (11.9% of monthly income)

Population: 338,291

This city about 90 miles west of Chicago was home to the Rockford Peaches, a women’s professional baseball team in the 1940s and 1950s that was fictionalized in the 1992 movie “A League of Their Own.”

4. Erie, Pennsylvania

Median home price: $123,200

Median household income: $50,614

Principal and interest payment: $514 (12.2% of monthly income)

Population: 274,541

Erie lies on the shore of Lake Erie, about halfway between Buffalo, New York, and Cleveland, Ohio. Portions of the bleak 2009 movie “The Road” were filmed in Presque Isle State Park, just offshore from downtown.

5. Davenport-Moline-Rock Island, Iowa-Illinois

Median home price: $133,900

Median household income: $54,173

Principal and interest payment: $558 (12.4% of monthly income)

Population: 382,263

Known as the Quad Cities, this metro area straddles the Mississippi River, about 175 miles west of Chicago. The 1991 biopic “Bix,” about Davenport native and jazz cornetist Bix Beiderbecke, was filmed partly in the Quad Cities. (The Census designation omits the name of the fourth city: Bettendorf, Iowa.)

Least affordable medium-size metro areas in Q3

1. Honolulu, Hawaii

Median home price: $818,600

Median household income: $81,284

Principal and interest payment: $3,412 (50.4% of monthly income)

Population: 988,650

The typical household in Honolulu has a high income compared to the national median, but house prices are sky-high, too, with the median house price more than 10 times the median household income. Parts of the 2004-2010 TV series “Lost” were recorded in Honolulu.

2. Boulder, Colorado

Median home price: $604,200

Median household income: $80,834

Principal and interest payment: $2,519 (37.4% of monthly income)

Population: 322,514

Nestled in the foothills of the Rocky Mountains, about 25 miles northwest of Denver, Boulder is home to the University of Colorado. In the 1980 horror classic “The Shining,” the exterior of the Torrance family’s apartment was filmed in Boulder.

3. Naples-Immokalee-Marco Island, Florida

Median home price: $425,000

Median household income: $66,048

Principal and interest payment: $1,772 (32.2% of monthly income)

Population: 372,880

This touristy area on Florida’s southwest coast is known for its white-sand beaches and fishing in the Ten Thousand Islands. Part of the 1997 comedy “Gone Fishin,’” starring Danny Glover and Joe Pesci, was filmed on Marco Island.

4. Reno, Nevada

Median home price: $385,800

Median household income: $61,360

Principal and interest payment: $1,608 (31.5% of monthly income)

Population: 464,593

Reno, about 50 miles northeast of Lake Tahoe, calls itself “The Biggest Little City in the World.” And it has big-city housing prices, dealing it a bad hand on the affordability scale. A lot of “Sister Act,” the 1992 Whoopi Goldberg comedy, was filmed in Reno.

5. Eugene, Oregon

Median home price: $302,700

Median household income: $50,654

Principal and interest payment: $1,262 (29.9% of monthly income)

Population: 374,748

Eugene, located in the Willamette Valley between the Pacific Ocean and the Cascades, has the lowest median household income among the five least affordable medium-size metro areas. It is home to the University of Oregon, where much of the 1978 comedy “Animal House” was filmed.

How NerdWallet crunched the data

Affordability was estimated by comparing each metro area’s median annual household income with the monthly principal-and-interest payment for a median-priced single-family home in the third quarter. (Median means half the incomes and prices are higher and half are lower.) After a 20% down payment, house payments were calculated at an interest rate of 4.74%, the average rate for a 30-year fixed-rate mortgage in the third quarter in NerdWallet’s daily mortgage rates survey. Payments exclude insurance and property taxes.

Metro-area median household income is from the U.S. Census American Community Survey of 2017. Metro area populations are from the Census estimates for 2017, the latest available. Median prices for resales of existing single-family homes in the third quarter came from the National Association of Realtors.

A version of this article was originally published by The Associated Press.

The article Home Affordability Watch: Price Tags in Midsize Metros originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Owning a home can be expensive, and monthly costs can be volatile. You can prepare for your mortgage payment, but if a leaky roof catches you off guard, your entire budget could be thrown out of whack.

About 3 in 10 homeowners (31%) don’t have money set aside for home repairs and improvements, according to the 2018 Home Improvement Report from NerdWallet. Considering Americans spent $449.5 billion on home repair and improvement projects in the most recent two-year period, according to the U.S. Census, having some money set aside is a good first step.

“It feels great to have cash on hand to pay for home improvements,” says NerdWallet home expert Holden Lewis. “But there are other ways to pay for home improvements and ways to ease the stress of an already stressful time.”

» MORE: Calculate the cost of your home improvement project

1. Always have a plan

A homeowner’s to-do list is never complete, but keeping a running tally is imperative. Keep track of your regular maintenance schedule, such as furnace filter replacements and gutter cleaning; the priority projects that you’d like to get done soon, like fixing a drafty window or an exterior door that sticks; and the major updates you’d like to do eventually, such as replacing your kitchen cabinets or adding a new bathroom. Whether you use a pencil and notebook or an Excel spreadsheet, add a date as you complete each item.

Not only are you less likely to forget regular upkeep when you have a way of keeping track, but you can more easily prioritize the things that will save you from major repairs down the road, and your budget will thank you for it.

Also, use your list as a sort of inventory of all the work you do, including the unexpected repairs that are bound to come up. You’ll appreciate this log in years to come when, for example, you realize you’re about to repair your air conditioner for the fifth summer in a row, and maybe it would be savvier to replace it.

Tracking your projects is also useful when it comes time to sell. It’s much easier to pinpoint what year you put on a new roof when you have the records all in one place, and the new owners will appreciate knowing the work you put in over the years.

2. Add to your emergency fund

It’s a good idea for everyone to have money set aside for home repairs, but especially those not living in a brand-new home. Unexpected repairs will come up: 44% of Americans who have ever purchased a home said their first unexpected home repair occurred within the first year of owning — 12% within the first month.

In general, an emergency fund is designed to catch all of life’s unexpected expenses or to cover regular expenses if you lose income. Adding an extra cushion can help pay for surprise home repairs without touching your primary safety net. Do what you can — try to set aside $100, to start. Once you have that, aim for $500, and so on. Including an extra few hundred dollars for your home will be enough to get your locks changed if you lose a key, to fix a leaky pipe, or patch a small roof leak — the little things that you don’t want to put off until your next payday or windfall.

3. Act quickly when it comes to repairs

When a repair pops up, tend to it. Just 55% of Americans would handle a repair right away, according to the report, and 9% of millennials would wait until the problem started causing damage. What begins as a minor issue can turn into a very expensive disaster if you put it off. A leaky pipe under the sink could eventually lead to a rotten subfloor, for example, boosting the cost of your problem exponentially.

4. Know your financing options

Have a plan in place should your home need major work or a big renovation project — things that your emergency fund or savings may not cover. More than half of homeowners (56%) say they would consider borrowing money from a lender or family member, for example, to pay for home repairs and improvements that would increase the value of their home. Home equity loans and home equity lines of credit (HELOCs) are also solid financing options. Knowing your home’s value is a good starting point for either of these, because the amount you’re allowed to borrow is based on market value minus how much you still owe on your mortgage, or your equity.

» MORE: Estimate your home’s value

5. Consider doing it yourself

Homeowners under age 35 DIY their home repairs and improvements more than they hire professionals, and more than all other age groups, according to the NerdWallet report. As such, they’re spending less, several hundred less, on a typical project. It’s true, DIY projects generally cost less than hiring a professional — you aren’t paying for labor. However, screwing up a DIY project — as 43% of homeowners admit to doing at least once — can wind up costing you more to fix.

Make sure to choose DIY projects within your skill set or those that can be easily learned and easily fixed, should they go wrong.

» MORE: 4 questions to ask before you DIY

6. If you go pro, do your research

If the project is outside of your abilities or you’d just rather pay for professional-grade work, be vigilant. Get at least a few estimates and ask questions — how they intend to do the job, what the estimated timeline is, whether they’re insured and how much experience they have with projects like yours, for example. Don’t simply go with the cheapest guy to save a few bucks — he could be the best person for the job, or you may wind up spending more to fix his screw-ups. Professionals should always come out to inspect the job in person, so don’t agree to hire someone over the phone or online.

“Home repairs are inevitable, and you’ll surely want to do renovations, even if they’re as simple as painting a bathroom,” Lewis says. “Before the work begins, you’ll feel less stress if you know where the money will come from.”

The article How to Keep Home Improvements From Demolishing Your Budget originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

In this series, NerdWallet interviews new homeowners across the country about their unique homebuying journeys and the financial decisions that helped them along the way.

Seattle’s housing market is finally starting to cool, and that’s good news for the hordes of young people who continue to flock to the Pacific Northwest tech hub.

But Lauren Byrne, a 26-year-old Nordstrom buyer, purchased a $390,000 condo with her boyfriend, Zach, in December 2017, when the market was still hot. (The couple split the down payment.)

Byrne, who studied finance in college and also runs a personal finance blog, bought the condo as an investment property. She and Zach live there now, but they plan to rent it out next year.

We spoke with Byrne about her homebuying journey, how she saved, and her one major regret. She worked with Zach’s father, Doug McKiernan, who is a real estate agent; he shared his advice for first-time buyers in the area. (This transcript has been lightly edited for clarity and length.)

What brought you to Seattle?

I’m originally from Ireland. My family immigrated to Seattle when I was 3. A lot of Irish people immigrate to New York City and Boston, but my family had good friends in Vancouver, British Columbia, so they wanted to be close to people they knew. I’ve grown up in the Seattle area for most of my life and went to college at Washington State University.

Seattle has changed a lot in terms of affordability, the size of the population and restaurants and activities. A lot of people have been pushed out of the city.

» MORE: Compare the costs of living in different cities

Why did you decide to buy a home in Seattle?

I had been renting in college and continued renting after I moved back to Seattle for work. My parents started purchasing investment properties around 10 years ago, and it’s been really great for them, so that inspired me.

What were you looking for in a home?

My goal was to find a place I could rent out quickly and consistently over time. I wanted it to be close to downtown Seattle — close to offices, nightlife and restaurants — so that it would attract rental interest. It didn’t need to have the latest and greatest updates, but I wanted something that I didn’t have to put a lot of money into after purchasing.

What was your homebuying journey like?

My lease on the apartment I was renting ended on Dec. 31, 2017, so I started looking in early October of that year. I found our place within the first weekend of looking. We saw six places on Saturday, including our future home, and then went back on Sunday and decided to make an offer for $390,000 — that was the asking price — and we closed by mid-November. The offer was accepted right away. Our agent was able to negotiate for the seller to cover our closing costs as well.

The owner had passed away, and the sale was being managed by a third party who didn’t have a personal stake in the property and therefore wanted to wrap up the sale as quickly as possible.

How did you know that the home was the one for you?

Based on my budget of $400,000, I knew I’d be restricted to condos. Most single-family homes were starting at $800,000 at the time. The condo has a garage, its own private entrance and in-unit laundry. That made it more marketable for renting.

Some condos have a rule that only a certain percentage of the building can be rented out at the same time, but there was no such cap on this unit.

What’s your approach to finance, and how did you save for the home?

My interest in finance started at a young age after seeing my parents work super hard and make sacrifices — they moved to the U.S. without a lot of connections or income to support themselves. They taught me how to manage money, and I wanted to be successful to make their sacrifices worth it.

I have a really balanced approach when it comes to saving and money. I definitely think it’s important to take care of your future self. I follow the 50/30/20 budgeting method. I’ve always committed to saving or investing 20% of my $91,000 income. Since I started working, that 20% has gone into a separate account that I don’t see on a day-to-day basis. I also receive a bonus every year and saved that money for my home purchase. But I also want to live a lifestyle that makes me happy, so that’s where the 30% comes in.

Were there any surprises or challenges? Would you have done anything differently?

I met with a mortgage broker just a year out of college, two years before I made the purchase, and decided to wait and save more. But when I went through the process last year, I was actually in a worse position because home prices had gone up exponentially. Seeing how much the market exploded since I met with the broker, in hindsight I would have tried to buy sooner since I did have enough to make a purchase at the time.

What advice would you give to someone considering moving to Seattle?

Don’t look at places at face value; imagine what they could be in the future. The public transportation isn’t great once when you’re out of the city center. If you look 10 miles out of the city center, it’s very tricky to get around, but the city is working on expanding its light rail system.

Advice for first-time home buyers

Doug McKiernan helped Lauren and Zach through the homebuying process, and he gave us a few tips for first-time buyers in Seattle:

Consider South Seattle. Columbia City, in particular, is a promising neighborhood about 4 1/2 miles from downtown Seattle. “South Seattle has taken off,” he says. “There’s a lot of new development, and that’s where the cheaper land is.”

New to the city? Rent first. “If you’re just moving to Seattle, start by renting for at least six months until you learn which parts of the city you’d like to live in, and consider your commute,” McKiernan says. “Traffic is terrible, so make sure you’re not spending two or three hours on the road every day.”

The market is better than it was. Seattle’s housing market used to be one of the hottest in the country, but inventory is growing now. “During the market we were just in, people were overpaying for homes and there were so many multiple-offer situations. It’s slowed down considerably since the end of June,” he says. “Now you have more choices and less urgency.”

Be honest with yourself. If buying a home in Seattle isn’t in the cards for you financially at the moment, that’s OK. “I always tell people not to be house rich and lifestyle poor,” McKiernan says. “Do something that fits within your means and work with a lender prior to starting.”

The article How I Bought a Home in Seattle originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.