If accelerating home prices are keeping you from making a move, you’re not alone. Home prices are on the rise, growing 4.3% between the third quarter of 2023 and the third quarter of 2024. If you bought your home during the low-interest-rate frenzy of 2021 and 2022, you might feel anchored to your mortgage.
But here’s the good news: investing in your current property with a home equity loan could be a smarter move than moving into a new one. Let’s dive into why reinvesting in your property can help build equity and inspire you to love where you live.
Rising Home Prices Across the United States
Home values are going up, which is great for equity, but it makes those “forever homes” harder to afford. Homeowners are sitting on the highest amount of home equity since the 1950s, but the gap between what your starter home is worth and the cost of upgrading continues to widen – and it’s happening nationwide. For instance, Columbus, Ohio, was recently cited as the most popular housing market in the United States, and home prices in Florida are surging to record highs.
When Does it Make Sense to Stay in Your Home?
Staying in your home can be a game-changer, especially if:
- You’ve outgrown your home but don’t want to face today’s high rates.
- You can leverage a home improvement loan to upgrade your space.
- You want to increase your home equity and stay in the property.
Top Investments That Add Value to Your Home
Not sure where to start? You can leverage a home equity loan to jumpstart some of these home improvement projects with the highest ROI:
- Upgrade Your Kitchen – It’s where everyone gathers, so new countertops or energy-efficient appliances can transform the space.
- Modernize Bathrooms – A little luxury goes a long way, and future buyers love updated baths.
- Create Outdoor Living Spaces – A deck or a patio can make your outdoor area an oasis.
- Improve Energy Efficiency – Think new windows, insulation, or even solar panels.
- Finish Your Basement – Add an extra bedroom, living space, or office and expand the possibilities of your home.
How to Fund Home Projects with a HELOC or Refinance
Renovations don’t have to drain your savings. Consider these home financing options:
- HELOC (Home Equity Line of Credit): Use your home’s equity and enjoy flexible access to funds with competitive HELOC rates.
- Home Equity Loan: Lock in fixed home equity loan rates for predictable monthly payments.
- Cash-Out Refinance: Refinance your mortgage and take out extra cash for upgrades.
Why Reinvesting in Your Home Works
Here’s the bottom line: your current home might be your strongest asset right now. With the right home improvement financing, you can turn your space into a dream home without battling today’s housing market. Plus, every upgrade can add value or help build equity for the future.
So, why not fall back in love with your home? Talk to one of our home equity lenders today to explore your options or explore our home equity solutions.
