Using Home Equity For Home Improvement
2 min read
Posted on May 12, 2025
Home renovations can enhance both the comfort and value of your home, but funding these improvements can be a challenge. Rather than depleting your savings or relying on high-interest financing, leveraging your home equity may be a cost-effective solution . At Splash Financial, we help homeowners access financing options to turn their renovation dreams into reality. Here’s how you could use home equity to fund your next home improvement project.
Understanding Home Equity
Home equity is the portion of your home that you truly own—calculated as the difference between your home's current market value and your outstanding mortgage balance. If your home is worth more than you owe, congrats! You may be eligible to borrow against this equity to fund renovations and upgrades.
Why Use Home Equity Instead of Other Financing?
Compared to credit cards or personal loans, home equity financing often offers lower interest rates. Plus, the interest might be tax-deductible if you’re using the funds for renovations (consult a tax professional to be sure).
Ways to Spend Your Home Equity
Not all renovations are created equal. Investing in the right renovations may enhance both your home's functionality and its market value. Some ways to utilize home equity include:
- Kitchen Remodel - Upgrading appliances, countertops, and cabinets may improve both usability and resale value.
- Bathroom Upgrade - Turn your outdated tub into a spa-worthy oasis. Modernizing fixtures and adding energy-efficient features could enhance daily comfort.
- Roof Replacement - Protecting your home and ensuring structural integrity could prevent costly repairs.
- Energy-Efficient Windows - Reducing energy costs while improving insulation. Lower bills, higher resale value. Could be a win-win!
- Basement or Attic Conversion - More livable space = more home value. Creating additional living space may boost home value and functionality.
How to Get Started through Splash Financial
- Understand Your Options – If you’ve read this far, you’re off to a great start! Knowing a few ways to achieve your financial goals will help you make an informed decision.
- Get an Estimate – Figure out your renovation costs and timing to determine how much you’ll need now and longer term.
- Know Your Home Value – When it’s time to get you an offer, we’ll ask you to estimate the value of your home. Then we’ll take care of confirming the value.
- Apply and Access Funds – Once approved and disbursed, you can use the funds to start enhancing your home.
Ready to Explore Your Home Equity Options?
Disclaimer
The information provided in this blog post is not intended to provide legal, financial or tax advice. We recommend consulting with a financial adviser before making a major financial decision. Starting a HELOC application through Splash is not a credit decision or a commitment to lend and your credit approval, interest rate, and APR will depend on various factors including the type of loan, your credit profile, property value, occupancy, loan size, etc. Rates and product availability may also vary based on the State or region in which your financed property is located and may change without notice. All loans are subject to credit approval, property approval, identity verification, required documentation, and membership eligibility. Additional restrictions, fees, and qualifications may apply. All HELOC loans are required to maintain appropriate homeowner’s insurance and may require additional flood and/or hazard insurance. Consult a tax advisor for tax deductibility guidelines. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER