What can you use a Home Equity Loan for?
A home equity loan is best used for improvement, renovation or repair which will appreciate the value of the house. In US, as per 2021 American Housing Survey report, an average amount sourced from the home equity loan was $11,240 for series of housing projects. An amount of $35,000 was used for kitchen renovation by the houseowners as per the report.
Borrowers can avail home equity loan for anything they wish for, but it is highly suggested to use the equity amount to finance vacations or similar expenses which would not add up to wealth of the borrower.