As millions of people sheltered in their homes over the last few months, home renovations have become a booming business. When you add on the fact that interest rates are at their lowest in history, and home values haven’t suffered during the current market downturn, you get the perfect formula as a homeowner to look at a home equity line of credit (HELOC) as a great way to pay for those upgrades you have been thinking about.
Before you consider any renovations, though, it’s important to do things that are really going to improve your home’s value and functionality. Think about why you’re renovating, because that can significantly impact what you want to do — homeowners who are planning to put the house up for sale may want to do some things differently than those looking to stay in the home for a long time.
Here are some of the best updates and home renovations to use your HELOC.
Few rooms in your house will get as much use as your kitchen. For many families it’s a focal point where everyone gathers, from weeknight homework sessions and dinners to weekend dinner parties with extended family and friends. Updating a kitchen doesn’t always mean gutting the room and starting from scratch. Simply updating the flooring, adding new countertops, or painting the cabinets can make a big difference with less stress and a lower budget.
Another project that can usually be done pretty quickly and can make a big difference is replacing the carpet. The average cost to install new carpet is between $3.50 and $11 per square foot (depending on the quality of carpet you choose, carpet pad, and other factors). Usually a carpet installation can be completed in just one or two days, depending on the size of your home, and is a great way to update the look and feel of a space. It’s also a great selling point if you’re planning to put your home on the market soon.
Do you have unfinished space in your home? Many people have extra space in the basement or over the garage that could easily be turned into livable space as a bedroom. This can add significant value to a home for resale, or give you and your family a little more room to spread out. Before adding a bedroom, make sure the space meets all building codes and requirements.
You never get a second chance to make a first impression, which is why your home’s exterior is so critical. If your home looks outdated and needs a fresh coat of paint, some siding repairs, or new garage doors, a HELOC is a great way to get them.
To see how easy it can be to get approved for a HELOC and start working on your own projects around the house, talk to Integrity First Lending today.