Home improvements that can increase your home equity

If you’re a homeowner, your home can provide an affordable source of funding for any number of purposes Pay off debt To cover a large cost. Thanks to something known as that Home is equal, or how much value you have built into your home. You can withdraw from this equity in many waysfrom Home equity loan And HELOCs per Cash-out refinancing And reverse mortgage.

The more equity you have in your home, the more you can afford Possible Borrowing. Home equity is based on two factors: how much you currently owe on your home and how much your home is worth. As a result, some home improvements can increase your home equity if they add enough value to your home.

Whether you choose to DIY an inexpensive project or hire a professional for a price, you want to make sure you get the most return on your investment. So, we review the recommendations from National Association of REALTORS, HGTV, Better homes and gardens And Zillo To compile a list of improvements that give you the most bang for your buck.

Learn more about your home equity options here.

Home improvements that can increase your home equity

These are among the top home improvements that can increase your home’s value and, in turn, your equity.

Minor home improvements

You don’t have to spend a ton of money to make your home more valuable. Lots of inexpensive home improvements have significant ROI and you may be able to knock them out in a weekend They are connected:

• New color
• New light fixtures
• Kitchen updates (such as repainting cabinets, replacing cabinet and drawer pulls, and installing a new backsplash)
• Bathroom updates (such as fresh caulk, new fixtures such as shower heads or mirrors, and additional storage)
• Landscaping and adding curb appeal (like repainting your front door)

Check current home equity rates now to see how much you may be eligible to borrow.

Major home improvements

If your budget is big, these major improvements can really add value to your home. Be sure to consult a professional for any projects that you are not comfortable taking on yourself. Doing a job poorly will not help your bottom line.

• A new addition (such as a family room, extra bedroom or half-bath)
• A complete kitchen or bathroom remodel (such as rearranging the footprint and installing brand new appliances)
• An attic or basement conversion
• An HVAC update
• Flooring upgrades (refinishing hardwood or installing new flooring)
• Adding outdoor living space (such as a deck, patio or porch)
• window replacement
• Siding replacement

Bottom line

It’s also important to know which home improvements have the lowest ROI Adding a swimming pool, high-end upgrades and expanding a garage can be worst projects if your goal is to Build home equity. If you plan to stay at home for a long time and these add to your home enjoyment, it’s a different story. But if you are looking for Get the most out of your home equityStick to the projects on this list.

Which home equity option is best for you? Start your search by checking current rates here.