4 Ways to Add Value to Your Home
Use your HELOC or home equity loan to add value to your property that you can enjoy for years to come.
This unique type of loan lets you access the built-up equity in your home to use for a variety of purposes.
A HELOC is similar to a credit card in that you can use and reuse funds, but it offers lower interest rates and potential tax-deductible savings on home improvement projects.
One of the most common ways people use their HELOCs is to cover home improvement and remodeling expenses. From adding a new backyard patio to creating a luxurious master bath, the possibilities are endless.
But which projects offer the best investment potential? Consider the following:
It’s your home’s first impression to the world. And for just a few hundred dollars, you can make a big impact with some new plants and an updated walkway. Consider painting your front door for an added pop of color.
Small updates can make a big difference. Re-grout the tile, re-glaze the tub, upgrade the hardware and faucets, and add a fresh coat of paint to turn your bathroom into a spa oasis – all for around $2,500 or less.
Your kitchen is arguably the most important room in your home, so it’s worth keeping in tip-top shape. Minor kitchen remodels average about $15,000 and usually include new appliances, resurfaced cabinets, and possibly updated counters or flooring.
Creating a finished basement can be a smart way to expand your home’s footprint. But with estimates for even smaller basements starting around $25,000, the cost isn’t cheap. Do your homework first to make sure it’s the right move for your family.
Consider practical repairs as well. If your furnace breaks, your roof leaks or the foundation is crumbling, a HELOC offers a sensible way to cover those big expenses – with the added potential for tax savings.
Remodeling not your thing? Don’t worry – HELOCs offer flexible financing for whatever you need. Some other popular uses include:
- Education expenses. Because HELOCs offer a revolving line of credit, they are perfect for ongoing expenses such as tuition or school supplies.
- Emergency costs. When faced with an unexpected medical bill or vehicle repair, you can tap into your HELOC instead of using higher interest alternatives.
- Debt consolidation. Pay off higher interest debt with your HELOC and simplify your budget with one easy monthly payment.
While there are plenty of resources that explain what a home equity line of credit (or HELOC) is and what you can use it for, you’re not alone if you still have questions. If you’re intrigued by the prospect of a HELOC, but still cautious about filling out an application, we’re here to help.