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Increase the Value of Your Home with a Home Equity Line of Credit

June 7, 2023
Lexi Baldridge
Lexi Baldridge

Whether you’re making critical repairs or embarking on your dream remodeling project, a home equity line of credit (HELOC) is a popular financing option that can provide funds to improve the home that you and your family live in – and perhaps even enhance its worth.


Increase the Value of Your Home with a Home Equity Line of Credit


A HELOC is a flexible, revolving line of credit that uses the equity you have in your home as collateral. It’s a great way to finance upgrades that can maximize the value of your home and make it more appealing to prospective buyers.


How a HELOC can help increase your home’s value


Make necessary repairs 

Buying a house is just the beginning. Keeping your home in good condition is essential to maintaining its value. Fortunately, many structural components of your house – such as foundation, framing, plumbing, and wiring – should last 50 years or more. But mechanical systems and parts of the house that are exposed to weather may need attention sooner.

It may make sense to have funds from a HELOC available in the event you need to make emergency repairs. You can also use a home equity line of credit to finance regular maintenance such as fixing a leaky roof or replacing aging or damaged exterior siding.


Upgrade your home's features

Experts say that most homebuyers list an up-to-date kitchen in the top features they’re looking for in a new house, and bathroom renovations are among the most popular of all home improvements. Both of these upgrades can add significant value to your home.

For larger home projects or general repairs, a home equity line of credit may be the best financing option. With a HELOC, you can draw funds up to your credit limit whenever you need them.


Renovate to increase energy efficiency

Whether you want to stay in your home or are ready for a move, making your home more energy efficient could pay off in lower utility bills and a higher market value. But many of these upgrades, such as adding insulation, updating your HVAC system, or installing energy-efficient windows, could carry a considerable price tag.

Even though interest rates on most HELOCS are variable, they are still likely lower than a credit card or a personal loan, and may be a good option for energy upgrades that could save you money with lower energy bills now, and appeal to eco-conscious buyers who may be willing to pay a premium for maximum energy efficiency later.


Add square footage

Remodeling projects that add additional square footage to your home have the potential to add value to your property, but these types of projects can be quite expensive and returns aren’t necessarily guaranteed. Depending on the scope of the project and your budget, you could spend between $50,000 and $100,000 for a finished basement or a new bedroom and bath.

The decision about whether it’s worth it to increase the square footage of your home or remodel your kitchen or bathroom, depends on your family’s situation, how you’re going to pay for the work, and how long you plan to stay in the home.


Landscaping and outdoor upgrades

Upgrades to your home's exterior, such as new landscaping or a new deck, can also increase its value. Enhancing curb appeal can have a substantial impact on the initial impression your home makes. After all, your yard and the front of your house are the first things a prospective home buyer will see.

Outdoor living spaces are currently enjoying widespread popularity, along with decks, adding mature trees to your property, and xeriscaping, which is a landscape style that requires little to no irrigation.

Since adding plants and structures to your landscape could be considered seasonal projects in some parts of the country, a HELOC is a handy financial tool to have. You’ll have funds available when you’re ready to spruce up your yard for outdoor activities in the spring, summer and fall.


HELOCs: A flexible and powerful financial tool

A Home Equity Line of Credit can be a helpful and powerful financial tool when it comes to improving your home, but be sure to carefully consider your financial situation and ability to repay the loan before applying for one. Keep in mind that taking on additional debt also increases your financial obligation.

A Hancock Whitney banker can assess your project details and your personal financial situation to recommend the best financing solution for you. Visit a nearby financial center, or call 1-877-844-4948 option 1 to speak with a Hancock Whitney banker.


The information, views, opinions, and positions expressed by the author(s), presenter(s), and/or presented in the article are those of the author or individual who made the statement and do not necessarily reflect the policies, views, opinions, and positions of Hancock Whitney Bank. Hancock Whitney makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.

This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation.



Bankrate.com: Which Home Improvements Add the Most Value?, https://www.bankrate.com/homeownership/home-improvements-add-the-most-value/

ThisOldHouse.com: How Long Stuff Lasts, https://www.thisoldhouse.com/21015248/how-long-stuff-lasts

Ramsey Solutions, How Will Kitchen Remodeling Affect Your Home’s Value, https://www.ramseysolutions.com/real-estate/how-will-a-kitchen-renovation-affect-value

2Moving.com: How Much Does a Bathroom Renovation Increase Home Value, https://www.moving.com/tips/how-much-does-a-bathroom-renovation-increase-home-value/

Safewise.com, How Energy Efficiency Can Increase Your Home’s Value, https://www.safewise.com/blog/energy-efficiency-can-increase-homes-value/#:~:text=Thanks%2C%20in%20part%2C%20to%20the,market%20value%20for%20your%20home

Credit Karma.com, Do Home Additions Add Value, https://www.creditkarma.com/home-loans/i/do-home-additions-add-value

Bankrate.com, Does Landscaping Increase Home Value, https://www.bankrate.com/homeownership/landscaping-increase-home-value/

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