Use a Home Equity Line of Credit to Pay for These Renovations Before Selling Your Home
Do you feel like your home is overdue for some upgrades? Do you have plans to put it on the market? The right renovation projects will increase the value of your home and make it more appealing to potential buyers. Here are some of the top projects to add to your to-do list.
1. Make Your Home More Energy Efficient
Sometimes, a home upgrade may not make a huge impact on your home's appearance, but it makes it more efficient and functional for prospective buyers. If your HVAC or water heater is near the end of its lifespan, replace it with a more energy-efficient model. Homebuyers will appreciate this improvement and be willing to pay more for your home; meanwhile, you'll enjoy lower energy costs. New windows are another upgrade with a high payoff. They'll lower your cooling costs, and modern windows will improve the aesthetics and overall functionality of your home.
2. Enhance Your Curb Appeal
Are your flower beds lacking? Is your vinyl siding looking a bit dated? Use your renovation savings or the funds from your home equity line of credit to add curb appeal to your home.
Your home's exterior is the first thing visitors and potential homebuyers see when they arrive. It's smart to mulch your flowerbeds, add picturesque vegetation, and integrate a stone border into your landscaping. Fresh paint and new exterior materials help your home look its best while providing maximum payoff.
3. Upgrade Your Kitchen
Your kitchen is another top area to use the money from your home equity line of credit. Buyers know they will spend a lot of time in the kitchen, and they want a space with an updated look. A renovation doesn't have to be extensive to yield a strong payoff. If your cabinets look a little drab, one option is to replace them. You can also repaint them or simply replace the doors and hardware.
If you're going to completely replace one thing in your kitchen with your money from your home equity line of credit, make it your countertops. New countertops will change the appearance of your entire kitchen.
Home Renovations to Use Your Home Equity Line of Credit On
A home equity line of credit is a financial product that allows you to borrow the difference between your home's value and your mortgage value; this is known as your home's equity. For example, if your home is worth $300,000 and your mortgage is for $200,000, you have $100,000 of equity. A home equity line of credit allows you to borrow against this equity to fund your home renovations and other expenses. You can use funds from a HELOC for any purpose.