September 12, 2022

How to make your home’s equity work for you

As more Americans are staying in their homes right now, it may be a good time to make a home improvement list for the future. A Home Equity Loan is one of the most affordable ways to get money when you need it most. In short, a home equity loan allows a borrower to use the equity in his or her home as collateral. It gives you the opportunity to take the money you’ve invested in your property, and use it for other things.

Here are 5 affordable projects that can add value to a property, while enhancing its charm and beauty for all to enjoy:

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1. Paint! Paint! Paint!

Home improvement experts sing the praises of painting as one of the most affordable and important ways to add value to a home. Painting does not require expert skill, and it can add a whole new dynamic to a space for minimal cost. Choose colors wisely. Whites and neutrals are always ideal. They enhance hardwood floors, and create a fresh, clean look. An added bonus: neutral walls give potential buyers the chance to envision their furniture in the space.

For a list of supplies, and how-to instructions, check out How to Paint a Room by Harry Sawyers, of This Old House. Be sure to shop around for the best price on supplies, set a project budget, and stick to it.*

To estimate how much it will cost to paint one or multiple rooms, check out Home Advisor’s Interior Painting Cost Calculator.

2. Cook up a plan to update the kitchen.

According to HGTV, homeowners can expect to recoup 60% to 120% of their investment on a kitchen remodel, as long as they plan and budget carefully. So for those who want to do a complete overhaul in their kitchen, it’s best to secure estimates from at least 3 recommended contractors, and depending on the scope of the project, consult with a Banker about financing options.

Kitchen renovations don’t have to be deluxe (aka very expensive) to improve functionality, update style, and increase value.

Again, experts say one of the best investments homeowners can make is painting. Make dark, dingy cabinets bright with a fresh coat of paint, or go for a new, open look by removing cabinet doors and lining the inside with colorful wallpaper. These are great examples of inexpensive options that make a significant impact. Other affordable updates may include:

Changing the hardware on cabinets and drawers;
Retrofitting existing cabinets with customized storage; and
Installing new lighting.

3. Invest in energy efficient appliances.

Consider replacing outdated appliances with new, energy efficient appliances. Potential buyers are always interested in ways to save money, and energy efficient appliances can be a great selling point. To start researching energy-efficient appliances, check out the DIY Network.

4. Plant the seeds for a bright future.

Enhancing curb appeal is one of the easiest, and most economical, ways to enhance property value. Plus, DIY homeowners reap the added benefits of fresh air and sunshine from completing these projects, too. A well-manicured lawn complimented with flowers and shrubs help to create an inviting setting. For those in the market to sell, this is important, because if potential buyers don’t like what they see on the exterior, they may not be interested in exploring the interior. Some techniques, such as dividing perennials, cost nothing more than a little bit of time. For more tips on landscaping, visit Penn State Master Gardeners.

5. Remember, a Home Equity Loan isn’t just for your home.

Often, a home equity loan is an efficient way to gain access to cash. Interest rates are typically lower than those on a personal loan, and if you plan on staying in your house for a period of time, you have the opportunity to build your equity back again. In uncertain times, we encourage you to speak with a Fidelity Banker to learn more.

Let’s get started!

Fidelity Bankers are available to help their clients plan and finance home improvement projects. Get your home equity loan started now!