Using Your Home’s Equity: A Simple Solution to Life’s Needs

If large expenses — like a home improvement project, college education or new car — are looming, consider using the equity you’ve built up in your home to access cash quickly and easily. Many homeowners use their home’s equity to fund a range of projects and expenses. It can give you peace of mind to know that cash is readily available when you need it.


  • Home remodeling – Home equity loans and lines of credit were originally designed for home improvement projects. Upgrading your home makes it more comfortable and appealing, and renovations can increase its value when you decide to sell. Realtors agree that a kitchen renovation is among the best remodeling investments, but smaller projects such as upgrading garage doors, installing a steel-reinforced front door, or replacing vinyl siding all add curb appeal.
  • College tuition – Paying for education — for yourself or your children — can reap benefits of higher income and broader job opportunities. Instead of managing multiple student loans, by consolidating this type of debt your borrowing is streamlined and you can make one payment each month instead of multiple monthly payments. What’s more, the interest rate on a home equity line of credit or loan may be lower than what you would pay on a student loan.
  • Debt consolidation – Many consumers use home equity loans and lines of credit to consolidate and pay off credit card and other high-interest debt. You can shift your debt to a lower interest rate and save money by paying less in interest while you lower your loan balance. You often can establish a schedule for payments within a set repayment term.
  • Medical bills – Health care costs continue to rise, and a single serious illness can leave you with thousands of dollars in medical bills, even if you have health insurance. A home equity line of credit or loan enables you to consolidate medical bills, bring medical provider accounts up to date, and make just one payment each month.
  • New car – Using your home equity loan or line of credit to purchase a car can be smart. Negotiations with car dealers can be easier if you have funds readily available.
  • Emergency expenses – Financial advisors recommend that consumers try to maintain three to six months of income in savings to cover unexpected emergencies. Unfortunately, not everyone can do that. A recent survey found only 39% of Americans could cover an unexpected expense of $1,000 from their savings.[i] Thus, if like so many others these days, you are unable to make the recommended savings commitment, one alternative is to use a home equity line of credit as an emergency fund. It can cover expenses during weather-related home repairs, emergency loans to family members and other expenses that suddenly arise.


To see how much you can afford to borrow, click here to visit our calculator. Interested in our current home equity interest rates? Click here.

These are just a few of the ways homeowners are using a home equity loan or line of credit for large expenses. Your home can be the cash reserve you can rely on to fund the things you need and want the most in life.
Did you know that Adirondack Trust’s residential lending consultants are right here in our community? Plus, all loan decisions are made right here. We’re fast and knowledgeable in all types of loans from home equity to mortgages. Please stop by any ATC branch to learn more about our home equity products that go above and beyond to help you reach your financial goals.


[i] “Most Americans don’t have enough savings to cover a $1K emergency,” by Taylor Tepper,, Jan. 18, 2018. Available at: HTTPS://WWW.BANKRATE.COM/BANKING/SAVINGS/FINANCIAL-SECURITY-0118/

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