Using Home Equity to Renovate & Remodel Your Home
Home equity loans are typically used for home improvement projects because there is a friendly relationship between your home’s equity and improvements made to your home. Home remodeling projects increase the value of your house and add more equity to your home.
When to Use the Loan (And When Not to Use It)
Look at the home equity loan as an investment in your house. Would this be a wise investment or not?
Wise investments include either:
- Resale: These equity-financed jobs return high resale value (ex: kitchen remodels).
- Emergency: These equity-financed jobs are necessary, otherwise further damage to your house could occur (ex: bathroom remodels due to emergency leak).
* Caution: Your home’s equity is also dependent on other factors unrelated to your renovations. However, the relationship between equity and your Chicago-area home’s condition is certainly one that you should leverage.