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5 smart ways to use home equity
June 01, 2026 |

Your home may have more financial power than you think.

For many Ohio homeowners, their home is more than just a place to live. It may also be one of their most valuable financial tools.

As home values have increased over the past several years, many homeowners are sitting on more equity than they realize. While home equity can often be associated with kitchen remodels or large renovations, there are other strategic ways to use it to improve financial wellness, lower monthly expenses, and even prepare for future goals.

What is home equity?

Home equity is the difference between your home’s current market value and what you still owe on your mortgage. 

For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. This is the value you can potentially borrow against. 

There are two main types of borrowing options to make use of your equity.

  • Home Equity Loan: offers a fixed-rate lump sum with predictable payments
  • Home Equity Line of Credit (HELOC): offers flexible access to funds, as needed, during a specific period of time called a draw period

You can get expert guidance to help decide which equity option is best for your personal circumstances. The right option will typically depend on your goals, budget, and how you plan to use the funds. 

Keep reading to explore five smart ways your home can become one of your most useful financial tools.

Consolidate high-interest debt

One common use for home equity is consolidating higher-interest debt, like credit cards or personal loans. Because home equity loans and HELOCs often offer lower interest rates than unsecured debt, consolidating balances may help:

  • Simplify multiple monthly payments
  • Lower your interest costs
  • Create a clearer path toward paying down debt

For homeowners carrying balances with double-digit interest rates, using home equity strategically can often help save hundreds per month.1

Build a safer financial cushion

Life happens, and unexpected expenses will arise. Medical bills, emergency repairs, job changes, or major vehicle expenses can place stress on even the most well-planned budgets.

Using a HELOC as a flexible financial safety net instead of relying on high-interest credit cards during emergencies can help you easily navigate unplanned financial events. It can also provide peace of mind without needing to immediately tap into savings or retirement accounts.

Make home improvements that add long-term value

Not all renovations are purely cosmetic. Some home projects can improve your daily life while also increasing the long-term value and efficiency of your home.

Strategic ways to use home equity for home improvements include:

  • Energy-efficient windows or HVAC systems
  • Roof replacements
  • Accessibility upgrades for aging family members
  • Finishing a basement
  • Creating functional work-from-home spaces

Home equity can often help you bring your dream home to life. Incorporating a few strategic improvements may also help lower utility costs, improve resale value, and even allow you to stay comfortably in your home longer.

Pay for education or career growth

Education expenses don’t always stop after college. Certifications, trade programs, continuing education, or career training can help increase income potential and open new opportunities.

Consider using equity as a convenient way to help fund tuition expenses, cover trade school or certification programs, support career transitions, or invest in professional development.

Prepare for other major life transitions

Life changes quickly, and your financial strategy may need to change with it. Home equity can serve as a useful tool to support your goals or help navigate significant transitions, such as:

  • Starting a small business
  • Growing families 
  • Divorce or separation 
  • Caregiving expenses
  • Relocation costs
  • Aging-in-place home modifications

The goal is not simply borrowing because you can, but using your home’s value intentionally to strengthen your overall financial picture.

How Credit Union of Ohio can help

At Credit Union of Ohio, we aim to be your trusted financial partner in providing access to the tools, guidance, and support you need to succeed. From free financial counseling and financial education to low-interest lending options and unique savings products, we’re here to help you build your best life. 

Our current home equity specials include:

Home Equity Loan

  • Rates from 7.50% APR2
  • Fixed-rate option with a one-time lump sum disbursed at closing
  • No payment for 90 days available2

Home Equity Line of Credit (HELOC)

  • Introductory rate as low as 1.99% APR for 6 months2
  • Flexible borrowing option where you can access funds as needed during the draw period

Ready to explore your options? Apply online, call 800.443.5698, or stop by your local branch to learn more about how your home equity may help support your goals.

PEOPLE ALSO ASK

  • What is the difference between a HELOC and a home equity loan?

    A home equity loan provides a lump sum with fixed monthly payments, while a HELOC works like a revolving line of credit that allows you to borrow funds as needed during the draw period.

  • Is using home equity a good idea?

    Using home equity responsibly may help homeowners access lower interest rates and create financial flexibility, but it’s important to understand repayment terms and borrow carefully.

  • Can you use home equity for anything?

    While there are no limitations on how the cash from your equity can be spent, many choose to use it for home renovations, debt consolidation, tuition, and other major purchases. Both loan options are flexible and can be used for a variety of purposes based on your needs.

1 - Your experience may vary from the example presented.

2 - Existing CUO loans are not eligible for this offer. No payment for 90 days applies to Home Equity Loans. Current rate as low as 7.50%. 7.93% APR based on $75,000 loan with $758 in closing costs. Maximum APR of 18%. Interest will accrue during the deferral period and will increase the total amount to repay the loan. 1.99% APR introductory rate applies to Home Equity Line of Credit (HELOC) for qualified members. 8.02% APR based on $75,000 loan up to 80% LTV with $726 in closing costs. After introductory period, rate may vary based upon following: credit rating, value of collateral, and term. This offer may change at any time. Maximum LTV 90%.