The pandemic has altered many facets of our daily lives. Homes have been converted to include offices, classrooms, gyms, and theaters. People have spent more time in their homes than ever before.
Despite the economic disruption stemming from the pandemic, home prices continue to rise. Thanks to low interest rates and limited inventory, it’s a seller’s market. Now is a great time to take advantage of rising home values and low interest rates. Even if you aren’t planning to sell or buy a new home; you can make changes to your home to add value.
Home Equity Loans or Lines-of-Credit provide an excellent opportunity to remodel or update your home by utilizing your existing equity. You can add more equity to your home by using some of the equity you have already earned. It is a perfect time to re-imagine your home to fit your new lifestyle and interests.
Continue reading for ten ways to use a home equity loan or line-of-credit to remodel or upgrade your home.
1. Finish Your Basement
Take advantage of hundreds of square feet of livable space in your home by finishing your basement. Transform it from a dark, cold space to a bright, warm sanctuary by adding a ceiling, finished walls, track lighting, and soft carpet. You can also create additional rooms in your basement to suit your needs.
2. Create a Home Office
If you plan to work from home for the foreseeable future, you may want to invest in a dedicated workspace. You can add a nice touch with built-in bookshelves to enhance your professional space, as well as, add value to your home.
3. Add a Home Gym
Save precious time and money by avoiding overcrowded, expensive gyms and create a home gym. Tailor the space to fit your needs. Add mirrors to the wall, establish a free-weight corner, or install a bar to create a dance studio. The possibilities are endless depending on your fitness goals.
4. Create a Learning Space
Plan on homeschooling or continuing remote learning? Reconfigure a space in your home into a classroom. Add a whiteboard, computers, bookshelves, desks, a reading nook, and arts and crafts table to make it feel more like a classroom.
5. Add a Craft/Hobby Room
Tap into your creativity by designing a room for your hobbies and crafts. Install cabinets, counter space, and a large table to maximize workspace, and organize supplies for your favorite hobbies. Make it a creative oasis.
6. Expand or Remodel Your Kitchen
The kitchen is referred to as “the heart of the home.” It brings people together. The kitchen is the most expensive room to remodel, and one of the biggest selling points for a house.
If you use your time at home to hone your culinary skills, you may want to consider upgrading your kitchen. Install a gas stovetop, double oven, larger refrigerator, deep sink, and an island to showcase your talent for family and friends.
7. Remodel Your Bathroom
Transform your bathroom into a home spa. Install a luxurious rain shower, large soaking tub, or steam room to help you relax at the end of a stressful day. Create more vanity space so you can primp yourself before a night out - or an evening in!
8. Create a Home Theater
Convert a room into a home theater. Paint the walls a dark color, add risers to place relaxing recliners, install a projector, large screen, and surround sound for a true movie theater experience at home.
As an extra touch, add a vintage popcorn cart for fresh, warm, buttery popcorn to enjoy with your movies or favorite shows.
9. Make Your Home More Energy Efficient
If your home receives a lot of sunlight, consider installing solar panels on your roof. You will not only save money on energy, but it may also qualify you to receive extra tax credits.
You can also save energy by replacing old windows, reinsulating your home, or updating appliances to energy-efficient models.
10. Expand Your Home by Adding an Addition
Have you outgrown your home, but love the house and location? If you have the buildable area, you can make an addition for a family room, an extra bedroom, sunroom, in-law suite, or build over your garage so that your home fits your needs.
So, How Do Home Equity Loans Work?
A Home Equity Loan is a great option. It allows you to utilize the equity in your home for large purchases, home improvements, college expenses, or even a dream vacation.
A Home Equity Loan is a closed-end, fixed-rate loan with repayment terms up to 15 years. This loan option offers the ability to utilize the equity in your home for a purchase, debt consolidation, home improvement, college expenses, or even a dream vacation.
Enjoy peace of mind, because your payment will remain the same for the life of the loan. The maximum Home Equity Loan amount is up to 85% of the appraised value of your home, less your first mortgage balance. The repayment term you choose, your credit score, and the total loan to value determine the interest rate. The interest you pay may qualify as an income tax deduction; check with your tax advisor
In addition to upgrading your home, you may also use the loan to consolidate and pay down debts. There are numerous ways home equity can be used to benefit you and your family. The rewards are boundless.
Ready To Invest Back Into Your Home?
Enhancing your home using existing equity can make your house more attractive to future buyers and increase your property value. Using a Home Equity Loan or Line-of-Credit to upgrade your home may be one of the smartest financial investments you make, and one you can enjoy! Click below for more information:
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