The 3 Smartest Things to Do With Your Home Equity Right Now

by Jeff Landers

If you've owned your home for a few years, chances are it’s worth a lot more than when you bought it. And that extra value? It's called equity, and it might be one of the most under-utilized financial tools you have right now. With prices holding strong and interest rates reshaping the financial landscape, here are three ways to put your home equity to work right now:

1. Move Up With a Smaller Mortgage

One of the most common equity moves we’re seeing this year: homeowners trading up.

Let’s say your current home has gained $80K in value. That equity could be your down payment on a larger, newer, or better-located home, helping you:

Lower your monthly payment by putting more down
Lock in a better layout, office space, or backyard
Avoid a bidding war, thanks to more buying power

It’s a smart way to make a move without feeling the sting of 7% rates.

2. Use a HELOC to Upgrade… Wisely

If you're happy where you are but know your home needs some updates, a Home Equity Line of Credit (HELOC) could be your best friend.

Strategic renovations using a HELOC can:

Boost your home’s future resale value
Increase comfort and functionality now
Be more cost-effective than moving

Focus on high-ROI projects like kitchens, baths, HVAC, windows, or even curb appeal. Bonus: some HELOCs still offer lower rates than credit cards or personal loans.

3. Turn Equity Into Investment

Equity isn’t just a cushion—it’s capital. Some homeowners are tapping into it to:

Buy an investment property
Start a small business
Pay off high-interest debt

These moves aren’t for everyone—but for the right person, using equity strategically could build long-term wealth. Just make sure you run the numbers carefully, and always talk to a trusted lender or financial advisor before making a move.

Not Sure What Your Equity Looks Like?

If you’re curious how much equity you’ve built—or what it could help you accomplish—I'm happy to have that conversation. I can give you a quick equity snapshot, and we’ll talk through options that make the most sense for your goals. Just drop me a line below...

JRL