That kitchen you’ve been mentally redesigning...
The bathroom that really needs a refresh...
Or the outdoor space you keep saying you’ll get to someday...
What if you already have what you need to finally make it happen? Because a growing number of homeowners are realizing just that.
Homeowners are expected to spend over $522 billion on home improvements by the end of 2026 – and they’re not draining their savings accounts to get it done. Many are using their home equity.
And if you’ve owned your home for 10+ years, there’s a chance you could use your equity to fund some home upgrades too. Let’s break down what you need to know first.
What Is Equity? And How Does It Help?
Equity is the difference between what your house is worth and what you owe on your mortgage.
And according to Cotality, the average homeowner has about $313,000 worth of equity today. That’s more than enough to finally knock some projects off your list. And more people are realizing they can use that to give their home a little TLC.
Research coming out of Meridian Link says home improvements are the top thing people are using their equity for today.
Top Motivations for Equity-Based Borrowing:
Funding home improvements (45%)
Using it to pay down other debts / debt consolidation (16%)
Investing in other properties (16%)
Maybe it makes sense for you to do the same. But here’s what’s important. Just because you can use your equity doesn’t mean you have to. It also doesn’t mean every project makes sense.
