10 Things to do with a Home Equity Loan

Congratulations! The value of your house has increased, your payments have steadily lowered your mortgage, and you have equity built up in your home! Perhaps you should take advantage of that equity by taking out a home equity loan and using that hard-earned equity for a great cause. Need some ideas? We have plenty! Here are ten of our favorites.

10. Fix up the house and make it worth even more!
Remodel that outdated kitchen, install your whirlpool tub, or replace the windows and save on your energy bill year round. Or you could install new cabinets, replace the carpet, put a new roof on… Well, the options are only as limited as your imagination!

9. Send your kids to college
We know, you raised them for years and now you are going back in debt for them? But if education is high on your priority list, then this is a great way to spend your equity. Go ahead, educate them!

8. Fund a wedding
Maybe instead of college, your little girl is getting married? A home equity loan will help you pay for the wedding of her dreams.

7. Go on a vacation
Go to Hawaii, Mexico, or Tibet. Wherever your heart takes you, let your feet – and your home equity loan – follow.

6. Buy a second house
Whether it is the vacation home you have always dreamed of, a house to repair and sell, or even just a rental to further improve your finances, anything is possible! You can really make some money this way, or you can just enjoy your new beach bungalow in style.

5. Get your dream car/truck/boat
Everyone seems to have at least one of these in mind. Whether it is the car you have always wanted or the boat you just plain need, you can afford it now!

4. Do a little investing
You really can make your money work for you by taking your loan and reinvesting it in the stock market or in other ways. If this is what you enjoy, then go for it! There is nothing wrong with making your money work hard!

3. Donate to your favorite cause
You may not want to spend ALL of your loan on your favorite charity, but once you have paid for the car, maybe you should send a little to a good cause? Adopt a child in a third world country, donate to your church, or find a charity in need of your help.

2. Invest in the arts
Buy a favorite paining from a wonderful artist or some other collectible piece of art to increase the beauty of your home (at least on the inside) and your investments at the same time.

1. Consolidate your debt
Yes, this might be the least fun of our options, but it is in the number one place for a great reason – consolidating your debts can save you even more money over the long run, and can be far more valuable to you over time (and perhaps even more satisfying) than a new car or piece of artwork.