A recent report shows that housing sales and home values in Charlotte, NC are very high at the moment. And by all accounts, that’s good news for homeowners. But that news also leaves you with some decisions to make. With the home values increasing so rapidly, it’s likely that you’ve accrued some very useful equity in your home. But you might be wondering how exactly you can or should spend it. So, we’ve compiled a list of the smart and most common ways people utilize their home equity.

Home Equity: The smart ways to spend it

1. Home Improvements

Financing your home improvement project with a home equity loan can be a wise and cost effective way to upgrade your space. There are a number of improvements you could choose to make here–so many in fact that it seems almost silly to list them all out. But just to name a few you could install a deck, finish your basement or attic, remodel your kitchen or even increase your space with an addition. The great thing about opting to invest your equity back into your home is that you’re not just improving the functionality and appearance, you’re adding to the home’s resale value.

2. University expenses

This might come as a surprise to you, but a home equity loan will likely offer a lower interest rate than that of a student loan. So using your equity as a way to finance your own or your child’s college expenses is often a smart financial choice.

3. Debt consolidation

As we mentioned above, a home equity loan can offer a low(er) interest rate. So if you’re knee-deep in debts, especially high-interest debts, you might want to consider consolidating with your equity.

4. Pro Tip: How not to spend your equity:

While a home equity loan can certainly be the gateway to some very smart financial decisions, there are a few uses that aren’t recommended. The key takeaway here is that it is typically unwise to tap into your equity for any unnecessary personal expenses. Obviously, those can vary, but to be specific, it’s advised you steer clear of using it for things like lavish vacations, a swanky new boat or a shiny new sports car.

Feeling inspired to take on a remodeling project with your home equity? We’re here to help!


We are Meridian Design Build, Ltd. a Charlotte construction company that provides every client with comprehensive, timeless results with an unwavering commitment to quality, character, and integrity. Ready to start a project?

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