Home Improvement

A home equity loan used for home improvement, repairs or upgrades can give you a tax sheltered way of increasing the market value of your home.

If you make home improvements with the specific intent of increasing your property value, (as opposed to making it more comfortable to live in), make sure that the renovation will add the value you are looking for. For example, a kitchen renovation might recover the money spent and more, where as adding a pool might not.

While a home equity loan in most cases decreases your home equity, when used wisely for home improvements, a home equity loan can actually increase your home equity by increasing the market value of your home beyond the value of the loan.