Got Equity? Here’s How to Use It Without Regret

If you’re a homeowner, you might be sitting on more financial power than you think. Landon Bradfield explains what home equity is, how to build it, and—most importantly—how to use it wisely.

Home equity loans can be a lifesaver in the right situation, but they can also be a trap if used carelessly.  Here’s what you need to know.

What Is Home Equity?

Home equity is the difference between what your home is worth and what you still owe on it.

Example: If your house is worth $500,000 and you owe $200,000, your home equity is $300,000.

That equity is your asset—it belongs to you. While you can’t touch it as cash unless you sell the house, you can borrow against it with a home equity loan.

How to Build Equity in Your Home

You can grow your home’s equity in a few simple ways:

Make extra payments on your mortgage
Take care of your property—like lawn care, painting, and maintenance
Boost curb appeal—small updates can lead to big value

When (and When Not) to Use a Home Equity Loan

A home equity loan offers lower interest rates than most credit cards and allows you to spread out payments over time. But it’s not free money—you still have to pay it back. Use it wisely!

✅ Good Uses:

• Consolidating high-interest debt
• Remodeling (especially kitchens or bathrooms) before selling
• Home upgrades that actually add value
  
  

🚫 Avoid Using It For:

• Buying new furniture “just because”
• Splurging on a new TV or tech
• Taking a vacation you can’t afford
  
  

“TVs and vacations don’t add value—they lose it. And you’ll be stuck paying them off long after the fun is over.” – Landon Bradfield

Final Tip: Talk to Your Team

At Jordan Credit Union, we have friendly, knowledgeable staff who can help you figure out if a home equity loan is right for you—and make sure it fits your long-term financial goals.