Many people think of home equity loans for major renovations or debt consolidation. And yes, those are two popular ways to use it. However, many homeowners are discovering other creative ways to leverage their equity for life’s unexpected moments and opportunities. Here are five often-overlooked uses that might surprise you.
Starting or Growing a Business
Entrepreneurs frequently tap home equity to fund startups or expand existing business ventures. With lower interest rates than most business loans and personal loans, and more flexible terms than investors demand, home equity provides capital without giving up ownership stakes. Whether you’re launching a side hustle or scaling your company, your home equity can be a smart choice.
Funding Adult Education and Career Changes
It’s not just for kids anymore. Many homeowners use equity to pay for graduate degrees, professional certifications, or career retraining programs. Investing in education can dramatically increase your earning potential, and home equity loans often offer better rates than private student loans. If you’re considering a career pivot or professional development, your home equity might be the cheapest option.
Medical Expenses and Elective Procedures
It’s not breaking news that healthcare costs continue to rise. It’s equally unsurprising that insurance doesn’t cover everything. That’s why homeowners are using equity to pay for necessary medical procedures, dental work, fertility treatments, and even elective surgeries that improve quality of life. When health and wellbeing are at stake, having access to funds through home equity provides peace of mind and options.
Wedding Expenses
While we’ve already touched on rising healthcare costs, wedding costs are also increasing at a fast rate. The average wedding costs tens of thousands of dollars, and many families use home equity to help pay for their children’s celebrations without draining retirement savings or racking up high-interest credit card debt. A home equity loan offers predictable monthly payments and allows families to create memorable events without financial stress.
Investment Property Down Payments
Savvy investors leverage equity in their primary residence to purchase rental properties or vacation homes. This strategy allows you to enter the real estate investment market without liquidating other assets. The rental income can often cover the equity loan payment while building long-term wealth through property appreciation.
Your home equity is more than just a number on paper. It’s a flexible financial tool that can support your goals, whether you’re building a business, investing in yourself, prioritizing health, celebrating life’s milestones, or growing your investment portfolio. The key is understanding your options and choosing the path that aligns with your financial situation and long-term objectives. If you’re interested in seeing what we have to offer, you can prequalify instantly without taking a hit to your credit.
Please Note: Spring EQ does not provide tax, legal, investment or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.