With a home equity loan, you are investing money available in your home, right back into it - and increasing your home 's value at the same time. This is a win-win situation. While you're rebuilding equity in your home, you'll also get to enjoy living with the improvements you made.
* Kitchen and bathroom remodeling return the most value to your home (see chart below).
* Repair and replacement projects (like new windows) help protect your home's value.
* A fresh coat of paint or new landscaping can improve curbside appearance.
* It is important to take into account the overall home or property values in your area. Normally, it is best not to over-improve your house beyond what is typical in your neighborhood. Otherwise, you may have difficulty covering the cost of improvements if you sell your home.
Home Improvement Projects Ranked by Return on Investment*
1 Minor Kitchen Remodel 88%
2 Two-Story Addition 83%
3 Bathroom Addition 81%
4 Bathroom Remodel 81%
5 Family Room Addition 75%
6 Major Kitchen Remodel 71%
7 Master Suite 71%
8 Attic Bedroom 66%
9 Siding Replacement 61%
10 Window Replacement 58%
11 Deck Addition 55%
12 Home Office 51%
*Source: REMODELING magazine,"1999-2000 Cost vs. Value Report", annual study contrasting the cost of home improvements with their recouped value when the house is sold.
