Using Home Equity to Finance Home Improvements

 

As a realtor, I have people come in the door to list their house right after they have made all these wonderful changes to their home. I always ask, do you wish you would have done this sooner to enjoy it yourself? Always remember it is not too late to get your house improvements done for spring or even heading into summer.

If you think your home could use some tender loving care by updating or renovating your living space, you may want to consider utilizing your home equity. It is a terrific way for homeowners to use their home equity to increase the value of their property with home improvements.
Whether you are adding to the backyard deck, renovating the kitchen or bathrooms, updating the flooring, or refreshing the landscaping, are all ways to add excellent value to your home.

Equity is the difference between the total value of your home and the amount owed on the mortgage. Your home equity is the percentage of the real property value you hold. Home improvements can increase the value of your property, which is (sometimes) called sweat equity. In essence, you are raising the market value of your home by increasing its marketability to potential home buyers.

As a homeowner, it is important to keep your home in great working condition. By doing so, you are protecting your investment and potentially increasing the resale value of your home by making updates and repairs. Using your home equity and reinvesting it in your home is a financial choice that many homeowners make. 50% of home equity loans are used to make home improvements, according to the US Census Bureau's Housing Survey.

A few other benefits of using your home equity to make home improvements can include, but are not limited to, Tax deduction, Low-Interest rates, and your return on investment that we have been talking about up above.

According to the American Time Use Survey, we spend about 62% of our lifetime at home. In this case, that means you want your home to be what you want, and if the house you currently are in isn't living up to your standards, there's a way to change that.

According to CNBC, external changes to homes are paying back big time. Things that can help increase curb appeal include outdoor living spaces are seeing the greatest increase in payback value. A good thing to note is that not everyone likes the latest expensive trend, although they do like appliances and fixtures that are functional and new.

 

Lisa Dieren Headshot

Lisa Dieren
Frontier Insurance and Real Estate
Agent/Real Estate Broker
(712) 472-3551
lisad@frontierbk.com 

 

 

 

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