Spring is a time for new life and new vibes and home décor is one of the best (and easiest) renewal tools you have for a fresh start. Your space should feel as comfortable and stylish as it is functional, so adding the perfect home décor accents is a great way to make that dream a reality.
Plus, this year has been ripe with trends as timeless as they are trendy. Whether you want to go full Barbie with a retro pink kitchen, incorporate Pantone’s 2024 Color of the Year, or hope to soak up some sunshine with a tropical chic décor theme, the following list will take you wherever you want to go. And you’ll get there in style. From sprucing up your home coffee station to creating your dream eclectic kitchen, check out these trendy home décor ideas for an easy spring makeover.
For your home coffee station
1. Cuisinart Grind and Brew 12-Cup Automatic Coffee Maker
Cuisinart Grind and Brew 12-Cup Automatic Coffee Maker
Start your daily grind with the perfect cup of coffee. In fact, with this great grind and brew machine, you can start it with 12 cups.
2. Glass Coffee Containers
Glass Coffee Containers and Coffee Station Organizer
Keep your coffee ingredients in order with these airtight containers for maximum freshness. The coffee organizer means you’ll give off major barista vibes any time you invite friends over for a cup of joe.
Eclectic kitchen décor finds
3. MacKenzie-Childs Courtly Check Canister
MacKenzie-Childs Courtly Check Canister
This set of three checkerboard pattern canisters will make your kitchen look great, and keep your ingredients organized all at the same time. Because home décor is no game!
4. Softiest Designs UO Exclusive Disco Donut Sculpture
Softiest Designs UO Exclusive Disco Donut Sculpture
You’ll be ready to dance the day away with this sparkly disco donut sculpture to liven up your kitchen.
To refresh your coffee table décor
5. Anthropologie Less Ottomans Hand-painted Menagerie Tray
Less Ottomans Handpainted Menagerie Tray
With two color options, this hand-painted menagerie tray makes an interesting addition to any coffee table, whether it’s used for food and beverage service or just for holding your favorite nicknacks!
6. Annie Leibovitz XXL Coffee Table Book
Annie Leibovitz XXL Coffee Table Book
Annie Leibovitz is one of the most celebrated photographers of the 20th century. Now, you can have her most iconic photos gracing your living room coffee table.
For your retro pink kitchen
7. Pink Smeg Retro Stand Mixer
Smeg Retro Stand Mixer, Pink
Nothing’s more fun than mixing it up with this gorgeous pink retro mixer from Smeg.
8. Retro Bottom Freezer Refrigerator in Pink
Retro Bottom Freezer Refrigerator in Pink
This retro pink refrigerator makes a real statement. And that statement is “I’ve got style and I don’t care who knows it!”
For your work-from-home setup
9. Industrial Modular Wall Desk
Industrial Modular Wall Desk
If you want to set up the ultimate work-from-home area, check out this high-quality adaptable wall desk set. It has five wood finishes and changes constantly to suit your needs, unlike your boss.
10. Katsunori Ergonomic Executive Chair
Katsunori Big and Tall Ergonomic Executive Chair
While comfort is important, great looks can’t be underestimated when it comes to a quality executive chair. This one is as comfy on the eyes as it is on the back, especially for the big and tall.
For fans of tropical chic décor
11. Tropical Leaves Wall Art
Tropical Leaves Wall Art
You’ll swear you’ve landed in the South Seas with these trendy wooden tropical leaves. They offer a lovely tropical silhouette to your living room wall.
12. Tropical Bloom Removable Wallpaper
Tropical Bloom Removable Wallpaper
What’s better than beautiful tropical wallpaper? How about beautiful tropical wallpaper that you can take with you when you move?
To hop on the aluminum furniture trend
13. Deco 79 Aluminum Drip Accent Table
Deco 79 Aluminum Drip Accent Table
This aluminum table is dripping with style. It’ll be a real conversation piece in any room you choose to place it.
14. Leporis Aluminum Accent Stool
Leporis Aluminum Accent Stool
This aluminum table is absolutely dripping with style. This will be a real conversation piece in any room where you choose to place it.
For Vintage Americana vibes
15. American Flag Framed Print
American Flag Framed Print
Nothing gives off vintage Americana vibes like a weathered framed flag print adorning your wall. You’ll pledge allegiance to spring with this one!
16. American Art Décor Licensed Chevron Gas Pump Plaque
American Art Décor Licensed Chevron Gas Pump Plaque
This cool gas pump wall plaque takes you back to a time when gas was just fifty cents a gallon and you had to buy cool wall décor IN PERSON.
For fun chalk sign ideas
17. Rustic Magnetic Kitchen Chalkboard Sign
Rustic Magnetic Kitchen Chalkboard Sign
A farmhouse-style chalkboard is a great way to give your kitchen folksy charm while offering an easy method to leave notes to family. Just don’t let them add too many treats to that grocery list!
18. WiFi Chalk Board Sign
Simply Said, INC WiFi Chalk Board Sign
Perhaps the most common question in any modern home is “What’s the WiFi password?” Now you can answer the question before it’s even asked with this fun chalkboard.
For fish tank-themed fun
19. Maryjane Mirrored Wall Mounted Aquarium Tank
Maryjane Mirrored Wall Mounted Aquarium Tank
Here fishy fishy! Decorate your home with this lovely one-gallon fish tank without taking up any additional counter space.
20. Fantasy Jellyfish Aquarium
Fantasy Jellyfish Aquarium
Now you can have fish tank fun without the hassle of caring for…you know…fish! This aquarium is maintenance-free and features lifelike rubber jellyfish that move and sway.
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In the kitchen, more Shaker-style cabinets, complete with a farmhouse sink, reinforce the theme.
Although the owner initially wanted an all-black kitchen, he and the designers eventually went with a light cream laminate for the cabinets at the top, with the black laminate kept to the cabinets at the bottom. As black laminate attracts fingerprints and dust, the designers selected a low-maintenance one that is less susceptible to marks.
The third and newest ship in the Virgin Voyages fleet is Resilient Lady, which was christened in 2023 and adds yet another bright red vessel to the high seas.
Virgin Voyages is an adults-only cruise line known for quirky modern design, entertainment that pushes the limits and exceptional, all-included specialty dining.
Virgin Voyages Resilient Lady destinations
The Resilient Lady’s home port is in Athens, and the ship sails itineraries in the Mediterranean for part of the year. Then, to reposition itself, the ship makes a transcontinental voyage that visits Dubai, India and Southeast Asia, before cruising on to Australia and New Zealand.
The ship also spends time in Europe, making stops in the U.K., the Netherlands, Spain and Portugal, among others.
Resilient Lady ship details
Don’t expect to find a lot of differences between the Resilient Lady and its two siblings, the Scarlet Lady and Valiant Lady — all three ships are nearly identical.
On the Resilient Lady, the nearly 2,800 passengers stay in just over 1,400 cabins across seven levels, ranging from solo rooms to large, impressive suites. Passengers also have access to amenities, restaurants and entertainment across another six decks, with a jogging track and yoga deck topping things off.
Expect to come aboard and find minimalist design, trendy music, lighting that changes throughout the day and a staff that sees entertaining as their raison d’etre.
Resilient Lady accommodations
The staterooms on the Resilient Lady are unique from the get-go. Instead of a traditional room key, cabins are unlocked using a bracelet made from plastic recovered from the ocean. Nearly all of the cabins come with balconies and many have a signature red hammock, allowing guests to lounge al fresco in privacy.
There are a handful of interior cabins without an ocean view. Social Insider cabins have bunk beds and are great for groups up to four, while Solo Insider cabins are smaller and perfect for the single traveler who doesn’t need a lot of space.
Both balcony and interior rooms typically have standard — and quite small — bathrooms with good lighting and wall-mounted Red Flower toiletries in the shower.
For a real treat, reserve one of the RockStar Quarters or the Mega RockStar Quarters. Some of these suites feature terrace whirlpools, living rooms and seaview showers.
Those lodged in RockStar Quarters and other suites are treated to a private area on one of the top decks known as Richard’s Rooftop. Here, the outdoor lounge serves complimentary drinks throughout the day, with live music at certain hours and whirlpools reserved for just these guests.
Other benefits of these cabins can include access to the spa’s thermal area, free laundry, comped minibars, and priority boarding. Roundtrip airport transfers are also available for these guests, and the largest suites have real guitars and amps for ensuite, self-made entertainment.
Rock Star Coordinators, otherwise known as cabin attendants, patrol the hallways of the most premium cabins to provide assistance in the room — making the bed, cleaning, helping with the ensuite record player or delivering room service.
In all staterooms, there’s an electronic tablet that controls the lights, temperature, shades, music and television. To provide extra space in some cabins, the beds can convert to a sofa during the day and revert back to a bed by night.
Resilient Lady amenities
There’s no shortage of things to do while sailing on the Resilient Lady. You can shop in the onboard boutiques, sunbathe by the pool, play basketball, enjoy arcade games, drink at the bars, test your boxing skills or relax at the spa.
The thermal spa area has steam rooms, saunas, a salt room, plunge pools, a beauty salon and spa treatment areas. Topless sunbathing is also an option on one of the upper decks.
There’s also an outdoor jogging track and free fitness classes on a fixed schedule. For a permanent reminder of your trip, visit the onboard tattoo parlor.
Resilient Lady dining
With more than 20 dining options on the ship, you can eat somewhere different daily and enjoy a variety of global cuisines.
The restaurants on the Resilient Lady are identical to those on Virgin Voyages’ other ships, and dining at all of them is included in the cruise fare. Unlike other cruise lines, you won’t pay extra to dine at specialty restaurants aboard Virgin Voyages, though some premium menu items may cost extra.
Instead of one main dining room or buffet, there’s a food hall — akin to what you might find in a high-end shopping mall — called The Galley, serving all kinds of prepared-to-order dishes. You’ll find sushi, ramen bowls, fresh salads, burgers, all-day breakfast choices, tacos, and even bento boxes with to-go goodies to take to the cabin.
Specialty restaurants include Pink Agave, a Mexican outlet with flaming skillets for fajitas and authentic fare from around the country; The Wake, featuring steak and seafood; and The Test Kitchen, serving up molecular fusion cuisine offerings. There’s also Italian cuisine, veggie-forward spots and more.
Other favorites include an ice cream bar, a carnival-inspired, 24-hour diner with popcorn and booze-infused milkshakes, and a Korean restaurant that has guests cooking barbecue and playing drinking games during dinner.
You can also pay for a dinner theater show — which includes a multi-course meal accompanied by acrobatic entertainment — or an afternoon tea paired with Champagne.
Resilient Lady beverages
One thing not included in the cost of sailing on the Resilient Lady is alcohol. There aren’t any drink packages like you’ll find on many other cruises. Instead, you can choose to pay in advance in the form of a bar tab, or as you go. If you choose to pre-pay your bar tab, you’ll get a bonus based on how much you spend.
There are numerous bars on the ship, from the rooftop pool bar to the ship’s own tap room, where you can order a beer growler to take elsewhere on the ship. And with the cruise line’s app, you can order a glass of Champagne to be delivered to you anywhere on board with just a quick shake of your phone.
For a pick-me-up, you can find all kinds of caffeinated brews at Grounds Club, and free Intelligentsia coffee is served in different venues on the ship. Travelers can also pay extra for cold-pressed juices and barista-made coffee drinks.
Resilient Lady nightlife and shows
The ship’s main hub for evening nightlife is called The Manor. Drinks flow constantly, and nightly acts include live music, comedy and even an adult-themed comedy show with audience participation. You won’t find Broadway-style musicals aboard, but there is a Greek history-inspired song and dance show.
There’s never a shortage of entertainment and talented staff perform all over the ship in bars and lounge areas, so don’t be alarmed if someone dressed as a passenger begins performing for you.
Known as “happenings” or “pop-up moments,” these impromptu improv acts add a bit of intrigue to the cruising experience.
For those who want to belt out some tunes, there’s a karaoke room. Also on the program are a casino, drag shows, fashion shows, bar crawls and even scavenger hunts.
You’ll find arcade games, themed parties (like the Scarlet Night evening) and a full roster of staff-led activities, from dance parties to pool parties.
You can keep an eye on everything by downloading the cruise line’s app or asking reception for a printed schedule. It’s easy to get around the ship since maps are posted everywhere, and the three sets of elevators are color-coded to help you know where you are (purple is at the front, blue is at the aft).
Resilient Lady inclusions
When sailing aboard Resilient Lady, you won’t pay extra for gratuities, Wi-Fi, specialty restaurants or onboard activities. However, you will have to pay extra for alcohol, destination excursions and upgraded Wi-Fi for streaming.
The cruise allows passengers to carry on board two bottles of wine per cabin at embarkation, but no liquor. This can help cut down on the cost of beverages during the sailing. Keep in mind that the drinking age changes based on where the ship is located — in the U.S. it’s 21, while in Europe and international waters the age is 18.
Resilient Lady is a treat
Virgin Voyages has managed to transform the traditional cruise experience into something both upscale, but playful enough, to appeal to all ages.
Rarely feeling crowded, the ship is hardly as large as some of the biggest in the world, and what you’ll find on this Richard Branson-born gem is exactly what you would expect from the daring British entrepreneur. Just be sure to pack an appetite, your dancing shoes and a Titanic-sized sense of humor.
(Top photo courtesy of Virgin Voyages)
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
A home equity loan or line of credit (HELOC) leverages your ownership stake to help you finance large costs over time.
Home equity financing offers more money at a lower interest rate than credit cards or personal loans.
Some of the most common (and best) reasons for using home equity include paying for home renovations, consolidating debt and covering emergency or medical bills.
Although allowable, it’s best to avoid using home equity for discretionary purchases and expenses.
The U.S. seems to have dodged a recession, but elevated interest rates, rising prices and shrinking savings continue to imperil many Americans’ financial security. Borrowing hasn’t been this expensive in 20 years and, to add insult to injury, it’s harder to get financing or credit, too. Half of Americans who’ve applied for a loan or financial product since March 2022 (when the Fed started raising its key benchmark rate) have been rejected, according to Bankrate’s recent credit denials survey).
But amid still-high mortgage rates and home prices, there’s a silver lining for homeowners. The rise in property values has increased the worth of their home equity, or outright ownership stake. You can borrow against that equity to meet new expenses — or settle old ones.
Two options to tap into your equity are home equity loans and home equity lines of credit (HELOCs). They may not be as well-known as other financing options (in Bankrate’s credit denials survey, only 4 percent of Americans have applied for one since March 2022), but they have several advantages.
If you’re a homeowner needing cash, here are 10 reasons to use home equity — some better than others. In each case, we’ve noted the pros and cons.
$299,000
Amount the average mortgage-holder had in home equity as of year-end 2023, up $25,000 from 2022
Source:
ICE Mortgage Technology
Why use home equity?
Key terms
Home equity
Home equity is the difference between what your home is worth and how much you still owe on your mortgage. As you pay down your mortgage and your home’s value increases, your equity stake grows.
Home equity loan
A home equity loan is a type of second mortgage in which you receive a lump sum upfront and then make regular monthly repayments over the loan term, usually at a fixed interest rate.
HELOC
A HELOC is a revolving line of credit, much like a credit card, that comes with a variable rate. You can borrow, repay and then re-use funds as needed during a set draw period and then pay off your balance during a repayment period.
Tapping your home’s equity can help you cover significant expenses, improve your financial situation or achieve any other money goal. The interest rates on a home equity loan or HELOC are usually lower than those on other forms of financing, and you can often obtain more funds with an equity product compared to a credit card, which might have a lower limit, or a personal loan. Home equity loans and HELOCs are also repaid over a longer term, meaning you’ll have more manageable payments month to month.
10 reasons to use a home equity loan
There aren’t any restrictions on how to use equity in your home, but there are a few ways to make the most of a home equity loan or HELOC. Here are 10 ways to use your home equity, along with their pros and cons.
1. Home improvements
Home improvement is one of the most common reasons homeowners take out home equity loans or HELOCs. Besides making the home more comfortable, upgrades could make it more valuable.
“Home equity is a great option to finance large projects like a kitchen renovation that will increase a home’s value over time,” says Glenn Brunker, president of online lender Ally Home. “Many times, these investments will pay for themselves by increasing the home’s value.”
Another reason to consider a home equity loan or HELOC for renovations: You could deduct the interest paid on the loan, assuming you itemize your deductions on tax return.
Pros
You can reinvest your home’s equity to increase the value of your property.
If you itemize your tax return, you could deduct the interest on your home equity loan or HELOC, up to the limit.
A HELOC, which allows gradual withdrawals, in particular can be ideal for long-term projects in which you pay contractors at set intervals, or ones in which the final cost is indefinite.
Cons
The monthly payments on a home equity loan or HELOC, coupled with your monthly mortgage payments, could stretch your budget too thin.
Depending on the scope of the remodel, you might need more than what you can borrow from your equity.
If you can’t repay the home equity loan or HELOC, the lender could foreclose on your home.
2. Education costs
A home equity loan or HELOC can help you fund higher education or continuing education, whether for you, your children or other loved ones. This route typically only makes sense, however, when home equity rates are lower than student loan rates. That doesn’t happen often, especially compared to federal student loans.
Consider, too, the type of education you’re financing. Someone obtaining a teaching certification, for example, might be able to get the cost covered by their future employer. Some public service professions are also eligible for student loan forgiveness after a period of time. In these cases, it wouldn’t be smart to put your home on the line with an equity loan.
Pros
Could be a lower-interest option than a private student loan, a federal parent loan or a personal loan.
HELOC gradual withdrawal structure tailor-made for annual or semi-annual tuition payments.
Could furnish a greater sum than a student loan.
Cons
Repayment starts sooner (with a home equity loan).
Rates not as competitive as federal student loans’.
Tapping home equity is riskier: If you default, you could lose your home.
The student might be able to get financial help in other ways, such as from a future employer or via loan forgiveness.
3. Debt consolidation
Americans’ credit card debt is skyrocketing. According to Bankrate’s recent credit card survey, nearly half (49 percent) of credit card holders carry a balance from month to month, up from 39 percent in 2021. Given their average interest rate of 22.75 percent, paying down that debt can be tricky — and expensive.
A HELOC or home equity loan can be used to pay off the plastic, along with other high-interest loans. “This is another very popular use of home equity, as one is often able to consolidate debt at a much lower rate over a longer term and reduce monthly expenses significantly,” says Matt Hackett, operations manager at mortgage lender Equity Now.
Home Equity
According to Bankrate’s February 2024 credit card repayment strategies survey, only 10% of credit card-holding U.S. adults report using a home equity loan and/or line of credit to consolidate and pay off credit card debt.
Pros
You could save on interest and lower your monthly payments.
Eliminating credit card debt boosts your credit score.
Cons
You’re turning an unsecured debt, such as a credit card, into secured debt now backed by your home. If you default on your equity loan or HELOC, you could lose your house to foreclosure.
If you haven’t broken the financial habits that got you into debt in the first place, or come up with a plan for repayment, you’re simply swapping one form of debt for another.
4. Emergency expenses
Many financial experts agree you should have an emergency fund to cover three to six months of living expenses, but that’s not the reality for many Americans, according to Bankrate’s 2024 annual emergency savings survey. If you find yourself in a costly situation — maybe you’re facing large medical bills or unexpected home repairs — a home equity loan or HELOC can be one way to stay afloat.
However, this is only a viable option if you have a plan for how to repay the debt. While you might feel better knowing you could access your home equity in case of an emergency, it still makes smart financial sense to set up and start contributing to an emergency fund. Plus, the application process for a HELOC or home equity loan takes time (though it’s speeded up of late: Some online lenders, such as Better, are offering approval decisions within one day). In a true emergency when you need cash fast, you’d need to already have the loan in place to use it.
Pros
If you’re in an emergency situation and have no other means to come up with the necessary cash, a home equity loan or HELOC could be the answer.
Cons
If you don’t have a HELOC or home equity loan already established, you’ll need to complete the application process first. So these loans won’t do you any good in a time-sensitive emergency.
You’re depleting your ownership stake, diluting the worth of a major asset: your home.
5. Weddings
The average cost of a wedding in 2023 was $35,000, according to the planning site The Knot — up $5,000 from 2022. For some couples, it might make sense to take out a home equity loan or HELOC to cover this expense, rather than a wedding loan, a type of personal loan. That’s because the interest rates on personal loans are typically higher than interest rates for home equity loans and HELOCs.
The major disadvantage, however: You’d be putting your home on the line for a discretionary expense. This can be risky if you don’t have a solid plan to repay the loan. It also tacks on interest to an expense that didn’t have interest to begin with, ultimately costing you more.
If you do go this route, be careful not to take out more than you need. If you’re unsure of the total tab for your big day, a HELOC is the better option.
Pros
Rates probably cheaper than those of personal loans or credit cards.
You may be able to access more funds than you would with other loans.
Cons
It’s a questionable move to put your home on the line for what’s essentially a big party.
You’re paying interest, so your wedding will cost more than you think: You could be paying for it decades after you wed.
When the loan’s used this way, the interest isn’t tax-deductible.
6. Business expenses
Some business owners use their home equity to start or grow their company. If you need capital, you might be able to save money on interest by taking equity out of your home instead of taking out a business loan. Before you commit, though, run the numbers. A return on investment isn’t guaranteed, and you’re putting your house on the line.
Pros
You might be able to borrow money at a lower interest rate with a home equity loan than you would with a small business loan.
It might be easier to obtain capital with a home equity loan than with a loan tied to your business, especially if you’re just starting out.
Cons
If your business fails, you’d still need to make payments on what you borrowed, regardless of lack of earnings. If you can’t, you could face foreclosure.
7. Investment opportunities
It’s possible to use home equity to invest in the stock market or buy a rental property — though both propositions are risky and require serious care and consideration. A well-qualified borrower might be able to take out a home equity loan on an investment property, as well.
Consider the interest rate on home equity borrowing, especially if you’re using the funds for investment purposes. “With interest rates of 9 percent, 10 percent or even higher, this is no longer low-cost debt,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “At rates that high, it is a tough hurdle to clear to get a positive return on your investment.”
Pros
Investing in the stock market or real estate can be a great way to build wealth.
Leveraging assets to invest increases your rate of return.
Cons
Investments always carry risk, but that’s especially true when you’re putting your home on the line. It’s possible that you won’t earn a high enough return to outweigh your loan debt.
You can’t take advantage of the home equity loan’s tax deduction on interest, except in a few cases, such as buying adjacent property or land.
8. Retirement income
If your retirement savings are falling short, tapping home’s equity can help supplement your income so you can better manage expenses. These funds can be used to cover bills, emergency expenses or even home improvements to make you more comfortable as you age. A big caveat: This strategy relies on your ability to repay the loan or HELOC. If you’re not yet drawing Social Security, you might be able to repay HELOC funds with the benefit money later on. If you’re fully retired and struggling to make ends meet, however, it’s possible you won’t have the means to repay the debt, even if you have a HELOC you don’t have to pay back right away.
There are other roadblocks to this strategy, too: If you’re still paying your first mortgage, tapping your equity adds to your expenses and puts you in debt that much longer. It might also be harder to even get an equity loan if your income has decreased in retirement.
Pros
Using your hard-acquired home wealth as source for retirement income can be a smart use of assets.
Cons
You’ll need to think through how to repay your loan while you’re retired, and even afterwards. Home equity debt doesn’t disappear when you pass away — your heirs will have to work with your lender if they want to keep the home.
It could be harder to qualify for a home equity loan with a lower retirement income.
Home Equity
If you need retirement income, a reverse mortgage may be a better option than a home equity loan or HELOC. With a reverse mortgage, your lender pays you a lump sum or a series of monthly payments; how much you can get is based on your home’s value. The loan balance (plus interest) becomes due when you move out, sell the home or pass away. Most reverse mortgages include a “non-recourse” clause, which stipulates that you (or your estate) can’t owe more than the home’s value when the loan becomes due (so if the home’s depreciated and worth less than the loan balance, no one is on the hook for the difference). The advantages: There are no monthly repayments while you’re living in the home, and there are no income or credit score requirements, so you can qualify even if you’re struggling financially. However, to get a reverse mortgage, you usually need to be 62 or older and have substantial equity in your home — meaning, your primary mortgage be substantially, if not entirely, paid off.
9. Funding a vacation
Traveling can come with a steep price tag, and tapping your home’s equity could help cover the costs without having to increase your credit card debt. Even the best vacations don’t last forever, though, and home equity debt can linger for decades, so weigh your decision carefully. Is the trip worth potentially risking your house to pay for?
Pros
Home equity loans typically have lower interest rates than credit cards, which could save you money.
Cons
Putting your home on the line is an extremely risky way to finance a trip that will be over in a matter of days — and you’ll still be paying for it many years after it’s over, which could ultimately cost you more in interest.
10. Other big-ticket items
It’s possible to use your home equity for big-ticket purchases, but it doesn’t add up in many cases. Home equity loans have much longer repayment terms than auto loans, for example, resulting in lower monthly payments, but much more interest over time. Cars are also depreciating assets, meaning your car will be worth much less than you paid for it by the time you finish repaying the equity loan.
Pros
You could finance a larger purchase, like a car.
Cons
Your home’s equity isn’t worth leveraging on an expense that won’t give you a solid return. With the example of buying a car, you’ll be risking your home for an asset that will be worth less than what you paid for it by the time you’ve finished repaying the loan.
Using home equity FAQ
The amount of home equity you can borrow against depends on a number of factors, including how much the home is worth, the outstanding balance on your mortgage and your credit score. Assuming you’re well-qualified, many home equity lenders allow you to tap up to 80 percent of your equity.
As with any loan product, a home equity loan or HELOC can hurt your credit score in the short term, in part because you’re taking on more debt and potentially raising your credit utilization ratio. Over time, however, your credit score could go up as you make regular monthly payments on your home equity loan. It’s possible to get a home equity loan with bad credit, too.
It can be. You can deduct home equity loan interest if you use the funds to “buy, build or substantially improve” the home that was used to secure the loan, according to the IRS. You must itemize deductions on your tax return, and — similar to the mortgage deduction — there are limits as to how much you can deduct.
Yes. The closing costs for home equity loans and HELOCs can range from 1 percent to 5 percent of your loan amount. These can include many of the same closing costs as a typical real estate closing, such as origination, appraisal and credit report fees. HELOC lenders also often charge annual fees to keep the line open, as well as an early termination fee if you close it within three years of opening. You could also incur a charge if you decide to convert your HELOC balance to a fixed interest rate.
If you’ve just closed on a home and need cash, you can generally tap into your home equity right away. However, some lenders require borrowers to wait several months before applying for a home equity loan or HELOC. And whether there’s a waiting period or not, you’ll have to meet the lender’s eligibility requirements. These can include credit score minimums, income verification and debt-to-income (DTI) ratio maximums. Most importantly, you’ll also need at least 20 percent equity in your home to qualify, though some lenders accept 15 percent.
“I would say more than 60% of the furniture I own is vintage, upcycled, or handmade. Everything has a history, which I love,” says the designer. One case in point is the curved sectional in the living room, which, as she puts it, “screams me the loudest,” and which she thrifted and reupholstered in a House of Hackney fabric and embellished with a fringe. “I am obsessed with that fringe. There’s something about the way the light shines through it in the morning and at night,” she adds. Other novelties include decorative table lamps, accent pillows, and chandelier shades handmade by her sister, muralist and textile artist Dede Chiloiro, in the living room and bedroom.
The walls weren’t exempt from time travel. “They were too white and too new for my personal style,” says Francesca, who papered them through and through until there was no white left in sight. (Her favorite is the textured grasscloth House of Hackney wallpaper in the living room, which she says inspires the most beautiful warmth.) “What was once so sterile turned into a cozy, moody sanctuary that’s perfect for me and my chickens,” she muses. Some things, such as the natural oak floor, the living room fireplace, and the wainscoting in the dining room, were left the way they were in a deliberate effort to honor the home’s history.
Technological advancement and innovation will drive the demand for textile home decor market.
Wilmington, Delaware, United States, Feb. 13, 2024 (GLOBE NEWSWIRE) — Transparency Market Research Inc. – The textile home decor market was valued at US$ 92.5 billion in 2022. By the end of 2031, it is expected to reach US$ 146.9 billion, expanding at a 5.4% CAGR during the forecast period. Technology will continue to play an increasingly important role in the design and manufacture of home decor products. Sensors and technology embedded in textiles and fabrics may become more popular for controlling temperatures, lighting, and even interactive features.
Textiles that are both attractive and functional have the potential to redefine the concept of home products. It is anticipated that consumer demand for individualized and distinctive items will only increase. It may become more common for consumers to use customization tools and services to create their own textile home décor pieces. This style is in line with the growing significance of uniqueness in interior design.
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Sustainability is expected to gain more attention in the future. There is an increasing demand for eco-friendly, organic, and sustainably sourced materials in home design as consumers become more ecologically concerned. Businesses that use sustainable methods could get an advantage over their competitors.
Key Findings of the Market Report
An increase in interior decor expenditure contributes to the growth of the textile home decor market.
Textile home decor accounted for the largest share of the market in North America in 2022.
A rise in residential construction increases the size of the textile home decor market
Living room decor has become more popular, which has led to a rise in the demand for living room linen.
With the rise of e-commerce stores, textile home decor is expected to become more affordable.
Global Textile Home Decor Market: Key Players
With the mounting demand for textile home decor with sustainable fabrics, several manufacturers are developing environmentally friendly home decor ideas and advanced textiles.
Prominent Market Players
Inter Ikea Systems B.V.
Mohawk Industries Inc.
Ashley Furniture Industries Inc.
Berkshire Hathaway Inc.
Williams-Sonoma Inc.
Nitori Holdings Co. Ltd.
Leggett & Platt, Incorporated
American Textile Company Inc.
Kurlon Enterprise Limited
Companhia de Tecidos Norte de Minas
Mannington Mills Inc.
Key Developments
In March 2023, ÖMSESIDIG added a new element to IKEA’s collection, exploring the traditions of coming together, celebrating, and culture in Latin America, collaborating with Mexico, Chile, and Colombian designers. In April, a wide range of products, including glassware, tableware, decorations, and textiles, was available in IKEA stores.
In May 2023, Williams-Sonoma, Inc. released GreenRow, the company’s first major brand in over a decade. An infusion of bright color contrasts with sustainable home decor and furniture collection. Using leftover fabric from ottomans for stool upholstery is one way the brand utilizes scraps of material.
Global Textile Home Decor Market: Growth Drivers
The need for textile home decor items is greatly influenced by shifting customer tastes and lifestyle trends. Unique and visually appealing home furniture is becoming increasingly popular as people look to customize their living areas.
Textile home décor pieces, including pillows, rugs, and curtains, allow customers to show off their unique flair, fueling the market for creative and varied patterns.
The growth of e-commerce has greatly impacted the market for textile home décor. Online shopping’s ease of use has expanded the market for well-known and up-and-coming companies, giving customers simple access to a large selection of goods. E-commerce sites provide a venue for producers and craftspeople to present their textile home décor lines, expanding the market’s reach internationally.
Sustainability is a factor that influences the textile home décor industry. Customers are looking for eco-friendly and sustainable solutions in home furnishings as their knowledge of the environment grows. In response, producers are using eco-friendly materials, using sustainable production methods, and encouraging ethical sourcing.
This move towards sustainability fits with global efforts for a more responsible and environmentally friendly production process and customer preferences. This helps to drive the textile home decor market’s overall expansion.
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Global Textile Home Decor Market: Regional Landscape
Asia Pacific’s textile home decor industry is forecast to grow robustly during the forecast period. Rapid urbanization and rising disposable incomes are driving home design item demand in the region. Increased urbanization and better economic conditions fuel a demand for textiles in home design, resulting in increased emphasis on improving living spaces.
Cultural diversity and a rich heritage in many Asian countries influence home decor preferences. Consumers frequently seek products that reflect their cultural identity and customs, resulting in a wide and active market for textiles catering to a variety of design aesthetics and trends.
E-commerce is also playing a major role in Asia Pacific’s economic growth. With an increasing number of consumers preferring online purchasing for its convenience and accessibility, textile home décor firms have broadened their reach via digital channels. This change to online retail not only gives consumers a wider range of options but also allows manufacturers to reach new markets and demographics.
Global Textile Home Decor Market: Segmentation
By Product Type
Rugs
Bath Linen
Bed Linen
Kitchen and Dining Linen
Curtains
Living Room Linen
Floor Carpets
Others
By Distribution Channel
Retail Stores
Direct-to-Consumer
Manufacturer Stores
E-commerce Stores
Discount Stores
Rental Stores
Club Stores
DIY Stores
By Application
Indoor
Outdoor
Others
By Region
North America
South America
Middle East & Africa
Asia Pacific
Europe
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A home equity loan is a lump sum of money you can borrow at a fixed rate based on the equity, or ownership stake, in your home. If you already paid off 15% to 20% of your house, this one-time installment loan can be used to cover major expenses, from home renovations to paying off debt.
Home equity loans have fixed interest rates, so your monthly payments are predictable and easy to budget for. But because your home acts as collateral for the loan, you could risk foreclosure if you fall behind on repayments.
I’ve spoken with experts about the advantages and disadvantages of home equity loans, how they work and where to find the best rates. Here’s what I’ve uncovered.
This week’s home equity loan rates
Here are the average rates for home equity loans and home equity lines of credit as of March 27, 2024.
Loan type
This week’s rate
Last week’s rate
Difference
10-year, $30,000 home equity loan
8.73%
8.73%
None
15-year, $30,000 home equity loan
8.70%
8.70%
None
$30,000 HELOC
9.01%
8.99%
+0.02
Note: These rates come from a survey conducted by CNET sister site Bankrate. The averages are determined from a survey of the top 10 banks in the top 10 US markets.
Current home equity loan rates and trends
Though home equity loan rates will vary depending on the lender and loan type, their rates are generally lower than personal loans or credit card annual percentage rates.
Home equity loan rates aren’t directly set by the Federal Reserve, but adjustments to the federal funds rate impact the borrowing cost for financial products like home equity loans and home equity lines of credit, aka HELOCs.
Since March 2022, the Fed has hiked its benchmark rate a total of 11 times in an attempt to slow the economy and bring inflation down, driving home equity loan rates up alongside. Though the Fed has kept interest rates steady since last summer, home equity loan rates have remained elevated for borrowers. Home equity rates are likely to stay high until the central bank begins cutting interest rates, projected for later this year.
With home equity loans, you tap into your equity without giving up the rate on your primary mortgage, making them a popular alternative to cash-out refinances. If you use a home equity loan to install solar panels or renovate your kitchen, you get the added benefit of increasing your home’s value.
“Most homeowners with mortgages in 2024 are choosing home equity loans or HELOCs, instead of a cash-out refinance, to avoid losing their attractive interest rates,” said Vikram Gupta, head of home equity at PNC Bank.
Best home equity loan rates of March 2024
Lender
APR
Loan amount
Loan terms
Max LTV ratio
U.S. Bank
From 8.40%
Not specified
Up to 30 years
Not specified
TD Bank
7.99% (0.25% autopay discount included)
From $10,000
5 to 30 years
Not specified
Connexus Credit Union
From 7.20%
From $5,000
5 to 15 years
90%
KeyBank
From 10.29% (0.25% autopay discount included)
From $25,000
1 to 30 years
80% for standard home equity loans, 90% for high-value home equity loans
Spring EQ
Fill out application for personalized rates
Up to $500,000
Not specified
90%
Third Federal Savings & Loan
From 7.29%
$10,000 to $200,000
Up to 30 years
80%
Frost Bank
From 7.3% (0.25% autopay discount included)
$2,000 to $500,000
15 to 20 years
90%
Regions Bank
From 6.75% to 14.125% (0.25% autopay discount included)
$10,000 to $250,000
7, 10, 15, 20 or 30 years
89%
Discover
6.99% for 1st liens, 7.99% for 2nd liens
$35,000 to $300,000
10, 15, 20 or 30 years
90%
BMO Harris
From 8.84% (0.5% autopay discount not included)
From $25,000
5 to 20 years
Not specified
Note: The above annual percentage rates are current as of March 1, 2024. Your APR will depend on such factors as your credit score, income, loan term and whether you enroll in autopay or other lender specific requirements.
Best home equity loan lenders of March 2024
U.S. Bank
Good for nationwide availability
U.S. Bank is the fifth largest banking institution in the US. It offers both home equity loans and HELOCs in 47 states. You can apply for a home equity loan or HELOC through an online application, by phone or in person. If you want a loan estimate for a home equity loan without completing a full application, you can get one by speaking with a banker over the phone.
APR: From 8.40%
Max LTV ratio: Not specified
Max debt-to-income ratio: Not specified
Min credit score: 660
Loan amount: $15,000 to $750,000 (up to $1 million for California properties)
Term lengths: Up to 30 years
Fees: None
Additional requirements: Subject to credit approval
Perks: You can receive a 0.5% rate discount by enrolling in automatic payments from a U.S. Bank checking or savings account.
TD Bank
Good for price transparency
Primarily operating on the East Coast, TD Bank offers home equity loans and HELOCs in 15 states. You can apply for a TD Bank home equity loan or HELOC online, by phone or by visiting a TD Bank in person. The online application includes a calculator that will tell you the maximum amount you can borrow based on the information you input. You can also see a full breakdown of rates, fees and monthly payments. No credit check is required for this service.
APR: From 7.99% (0.25% autopay discount included)
Max LTV ratio: Not specified
Max debt-to-income ratio: Not specified
Min credit score: Not specified
Loan amount: From $10,000
Term lengths: Five to 30 years
Fees: $99 origination fee at closing. Closing costs only application to loan amounts greater than $500,000.
Additional requirements: Loan amounts less than $25,000 are available only for primary residence property use.
Perks: You will receive a 0.25% discount if you enroll in autopay from a TD personal checking or savings account.
Connexus Credit Union
Good branch network
Connexus Credit Union operates in all 50 states, but it offers home equity loans and HELOCs in 46 states (excluding Alaska, Hawaii, Maryland and Texas). The credit union has more than 6,000 local branches. To apply for a home equity loan or HELOC with Connexus, you can fill out a three-step application online or in person. You won’t be able to see a personalized rate or product terms without a credit check.
APR: From 7.20%
Max LTV ratio: 90%
Max-debt-to-income ratio: Not specified
Min credit score: Not specified
Loan amount: From $5,000
Term lengths: Five to 15 years
Fees: No annual fee. Closing costs can range from $175 to $2,000, depending on your loan terms and property location. It has returned loan payments fees of $15, convenience fees of $9.95 (for paying by debit or credit card online) and $14.95 (for paying by phone) and a forced place insurance processing fee of $12.
Additional requirements: Because Connexus is a credit union, its products and services are only available to members. Member eligibility is open to most people: you (or a family member) just need to be a member of one of Connexus’s partner groups, reside in one of the communities or counties on Connexus’s list or become a member of the Connexus Association with a $5 donation to Connexus’s partner nonprofit.
Perks: Flexible membership options
KeyBank
Good online application user experience
Based in Cleveland, KeyBank offers home equity loans to customers in 15 states and HELOCs to customers in 44 states. Aside from a standard home equity loan, KeyBank offers a few different HELOC options. The KeyBank application allows you to apply for multiple products at one time. If you’re not sure whether KeyBank loans are available in your area, the application will tell you once you input your ZIP code. If you’re an existing KeyBank customer, you can skim through the application and import your personal information from your account.
APR: From 10.29% (0.25% client discount included)
Max LTV ratio: 80% for standard home equity loans, 90% for high-value home equity loans
Max debt-to-income ratio: Not specified
Min credit score: Not specified
Loan amount: From $25,000
Term lengths: One to 30 years
Fees: Origination fee of $295. Closing costs aren’t specified.
Additional requirements: Borrowers must be at least 18 years of age and reside in one of the states KeyBank operates in.
Perks: KeyBank offers a 0.25% rate discount for clients who have eligible checking and savings accounts with them.
Spring EQ
Good option for high debt-to-income ratio limits
Spring EQ was founded in 2016 and serves customers in 38 states. Spring EQ offers home equity loans and HELOCs. Spring EQ doesn’t display rates for its home lending products online — you must complete an application to see your personalized rate. The Spring EQ loan application process is simple though. Customers can see an extensive breakdown of their loan term and rate options without needing to undergo a credit check or provide their Social Security number.
APR: Not specified
Max LTV ratio: 90%
Max debt-to-income ratio: 50%
Min credit score: 640
Loan amount: Up to $500,000
Term lengths: Not specified
Fees: Spring EQ loans may be subject to an origination fee of $995 and an annual fee of $99 in some states.
Additional requirements: Spring EQ does not display rates for its home lending products online — you must complete an application to see your personalized rate.
Perks: Spring EQ has a higher maximum DTI ratio than most other lenders — compare 50% with the typical 43% average.
Third Federal Savings & Loan
Good option for rate match guarantee
Third Federal Savings & Loan first opened in 1938. Today, the bank offers home equity loans in eight states and HELOCs in 26 states. Third Federal offers a lowest rate guarantee on its HELOCs and home equity loans, meaning Third Federal will offer you the lowest interest rate relative to other similar lenders or pay you $1,000. You can apply for a home equity loan or HELOC on the Third Federal website. You won’t have to register an account to apply, but you’re still able to save your application and return to it later.
APR: From 7.29%
Max LTV ratio: 80%
Max debt-to-income ratio: Not specified
Min credit score: Not specified
Loan amount: $10,000 to $200,000
Term lengths: Five to 30 years
Fees: Home equity loans and HELOCs with Third Federal have an annual fee of $65 (waived the first year). There are no application fees, closing fees or origination fees.
Additional requirements: Specific requirements aren’t listed.
Perks: If you set up autopay from an existing Third Federal account, you’ll be eligible for a 0.25% rate discount.
Frost Bank
Good option for Texas borrowers
Frost Bank’s home equity loans and HELOCs are only available to Texas residents. You can apply for a home equity loan or HELOC on the Frost Bank website, but you’ll need to create an account. According to the website, the application will only take you 15 minutes.
APR: From 7.3% (0.25% autopay discount included, only available for 2nd liens)
Max LTV ratio: 90%
Max debt-to-income ratio: Not specified
Min credit score: Not specified
Loan amount: $2,000 to $500,000
Term lengths: 15 or 20 years
Fees: No application fee, annual fee or closing costs. Frost Bank does charge a $15 monthly service fee, which can be waived with a Frost Plus Account.
Additional requirements: Borrowers must reside in Texas. The bank also requires proof of homeowners insurance.
Perks: 0.25% rate discount for clients who enroll in autopay from a Frost Bank checking or savings account. However, this feature is only available for second liens.
Regions Bank
Good rate discounts
Regions Bank is one of the nation’s largest banking, mortgage and wealth management service providers. Regions offers home equity loans and HELOCs in 15 states. You can apply for a Regions home equity loan or HELOC online, in person or over the phone. You’ll have to create an account with Regions to apply. Before you create an account, though, you can use the bank’s own rate calculator to estimate your rate and monthly payment.
APR: From 6.75% to 14.125%(0.25% autopay discount included)
Max LTV ratio: 89%
Max debt-to-income ratio: Not specified
Min credit score: Not specified
Loan amount: $10,000 to $250,000
Term lengths: Seven, 10, 15, 20 or 30 years
Fees: No closing costs and no annual fees. Late fees apply for 5% of the payment amount. There is a returned check fee of $15 and an over limit fee of $29.
Additional requirements: Not specified.
Perks: Rate discounts between 0.25% and 0.50% to those who elect to have their monthly payments automatically debited from a Regions checking account.
Discover
Good option for no fees or closings costs
Discover is known primarily for its credit cards, but it also offers home equity loans — available in 48 states. The lender does not offer HELOCs at all. You can apply for a home equity loan from Discover online or over the phone. The application process takes approximately six to eight weeks in total, according to Discover’s website.
APR: 6.99% for first liens, 7.99% for second liens
Max LTV ratio: 90%
Max debt-to-income ratio: 43%
Min credit score: 620
Loan amount: $35,000 to $300,000
Term lengths: 10, 15, 20 and 30 years
Fees: None
Additional requirements: Specific requirements not listed.
Perks: The lender charges no origination fees, application fees, appraisal fees or mortgage taxes.
BMO Harris
Good option for second liens
BMO Harris products and services are available in 48 states (all but New York and Texas). BMO Harris offers home equity loans and three variations of a HELOC. You can apply for a home equity loan or HELOC online or in person, but in order to get personalized rates, you’ll have to speak with a representative on the phone. Getting personalized rates doesn’t require a hard credit check.
Home equity loans from BMO Harris are only available as second liens. If you have already paid off your mortgage, a rate-lock HELOC from BMO Harris may be a better option.
APR: From 8.84% (0.5% autopay discount not included)
Max LTV ratio: Not specified
Max debt-to-income ratio: Not specified
Min credit score: 700
Loan amount: From $5,000
Term lengths: Five to 20 years
Fees: There is no application fee. BMO Harris will also pay closing costs for loans secured by an owner-occupied 1-to-4-family residence. If you pay off your loan within 36 months of opening, you may be responsible for recoupment fees.
Additional requirements: Home equity loans are only available as a second lien (meaning you can’t be mortgage free)
Perks: If you enroll in autopay with a BMO Harris checking account, you’ll be eligible for a 0.5% rate discount.
What is a home equity loan?
A home equity loan is a fixed-rate installment loan secured by your home as a second mortgage. You’ll get a lump sum payment upfront and then repay the loan in equal monthly payments over a period of time. Because your house is used as a collateral, the lender can foreclose on it if you default on your payments.
Most lenders require you to have 15% to 20% equity in your home to secure a home equity loan. To determine how much equity you have, subtract your remaining mortgage balance from the value of your home. For example, if your home is worth $500,000 and you owe $350,000, you have $150,000 in equity. The next step is to determine your loan-to-value ratio, or LTV ratio, which is your outstanding mortgage balance divided by your home’s current value. So in this case the calculation would be:
$350,000 / $500,000 = 0.7
In this example, you have a 70% LTV ratio. Most lenders will let you borrow around 75% to 90% of your home’s value minus what you owe on your primary mortgage. Assuming a lender will let you borrow up to 90% of your home equity, you can use the formula to see how that would be:
$500,000 [current appraised value] X 0.9 [maximum equity percentage you can borrow] – $350,000 [outstanding mortgage balance] = $100,000 [what the lender will let you borrow]
A standard repayment period for a home equity loan is between five and 30 years. Under the loan, you make fixed-rate payments that never change. If interest rates go up, your loan rate remains unchanged.
Second mortgages such as home equity loans and HELOCs don’t alter a homeowner’s primary mortgage. This lets you borrow against your home’s equity without needing to exchange your primary mortgage’s rate for today’s higher rates.
Home equity loans have fixed interest rates, which is a positive if you’re looking for predictable monthly payments. The rate you lock in when you take out your loan will be constant for the entire term, even if market interest rates rise.
Reasons to get a home equity loan
A home equity loan is a good choice if you need a large sum of cash all at once. You can use that cash for anything you’d like — it doesn’t have to be home-related.However, some uses make more sense than others.
Home renovations and improvements: If you want to upgrade your kitchen, install solar panels or add on a second bathroom, you can use the money from a home equity loan to pay for the cost of these renovations. Then, at tax time, you can deduct the interest you pay on the loan — as long as the renovations increase the value of your home and you meet certain IRS criteria.
Consolidating high-interest debt: Debt consolidation is a strategy where you take out one large loan to pay off the balances on multiple smaller loans, typically done to streamline your finances or get a lower interest rate. Because home equity loan interest rates are typically lower than those of credit cards, they can be a great option to consolidate your high-interest credit card debt, letting you pay off debt faster and save money on interest in the long run. The only downside? Credit card and personal loan lenders can’t take your home from you if you stop making your payments, but home equity lenders can.
College tuition: Instead of using student loans to cover the cost of college for yourself or a loved one, you can use the cash from a home equity loan. If you qualify for federal student loans, though, they’re almost always a better option than a home equity loan. Federal loans have better borrower protections and offer more flexible repayment options in the event of financial hardship. But if you’ve maxed out your financial aid and federal student loans, a home equity loan can be a viable option to cover the difference.
Medical expenses: You can avoid putting unexpected medical expenses on a credit card by tapping into your home equity before a major medical procedure. Or, if you have outstanding medical bills, you can pay them off with the funds from a home equity loan. Before you do this, it’s worth asking if you can negotiate a payment plan directly with your medical provider.
Business expenses: If you want to start a small business or side hustle but lack money to get it going, a home equity loan can provide the funding without many hoops to jump through. However, you may find that dedicated small business loans are a better, less risky option.
Down payment on a second home: Homeowners can leverage their home’s equity to fund a down payment on a second home or investment property. But you should only use a home equity loan to buy a second home if you can comfortably afford multiple mortgage payments over the long term.
Experts don’t recommend using a home equity loan for discretionary expenses like a vacation or wedding. Instead, try saving up money in advance for these expenses so you can pay for them without taking on unnecessary debt.
Pros
One lump sum payment of total loan up front.
Fixed interest rate, meaning you won’t have to worry about your rate rising over the repayment period.
Typically lower interest rate than credit cards or personal loans.
Little to no restrictions on what you can use the money for.
Cons
Your home is used as collateral, meaning it can be taken from you if you default on the loan.
If you’re still paying off your mortgage, this loan payment will be on top of that.
Home equity loans can come with closing costs and other fees.
May be hard to qualify for if you don’t have enough equity.
Home equity loan vs. HELOC
Home equity loans and HELOCs are similar but have a few key distinctions. Both let you draw on your home’s equity and require you to use your home as collateral to secure your loan. The two major differences are the way you receive the money and how you pay it back.
A home equity loan gives you the money all at once as a lump sum, whereas a HELOC lets you take money out in installments over a long period of time, typically 10 years. Home equity loans have fixed-rate payments that will never go up, but most HELOCs have variable interest rates that rise and fall with the prime rate.
A home equity loan is better if:
You want a fixed-rate payment: Your monthly payment will never change even if interest rates rise.
You want one lump sum of money: You receive the entire loan upfront with a home equity loan.
You know the exact amount of money you need: If you know the amount you need and don’t expect it to change, a home equity loan likely makes more sense than a HELOC.
A HELOC is better if:
You need money over a long period of time: You can take the money as you need it and only pay interest on the amounts you withdraw, not the full loan amount, as is the case with a home equity loan.
You want a low introductory interest rate: Although HELOC rates may increase over time, they also typically offer lower introductory interest rates than home equity loans. So you could save money on interest charges.
Home equity loans vs. cash-out refinances
A cash-out refinance is when you replace your existing mortgage with a new mortgage, typically to secure a lower interest rate and more favorable terms. Unlike a traditional refinance, though, you take out a new mortgage for the home’s entire value — not just the amount you owe on your mortgage. You then receive the equity you’ve already paid off in your home as a cash payout.
For example, if your home is worth $450,000, and you owe $250,000 on your loan, you would refinance for the entire $450,000, rather than the amount you owe on your mortgage. Your new cash-out refinance home loan would replace your existing mortgage and then offer you a portion of the equity you built (in this case $200,000) as a cash payout.
Both a cash-out refi and a home equity loan will provide you with a lump sum of cash that you’ll repay in fixed amounts over a specific time period, but they have some important differences. A cash-out refinance replaces your current mortgage payment. When you receive a lump sum of cash from a cash-out refi, it’s added back onto the balance of your new mortgage, usually causing your monthly payment to increase. A home equity loan is different — it doesn’t replace your existing mortgage and instead adds an additional monthly payment to your expenses.
Who qualifies for a home equity loan?
Although it varies by lender, to qualify for a home equity loan, you’re typically required to meet the following criteria:
At least 15% to 20% equity built up in your home: Home equity is the amount of home you own, based on how much you’ve paid toward your mortgage. Subtract what you owe on your mortgage and other loans from the current appraised value of your house to figure out your home equity number.
Adequate, verifiable income and stable employment: Proof of income is a standard requirement to qualify for a HELOC. Check your lender’s website to see what forms and paperwork you will need to submit along with your application.
A minimum credit score of 620: Lenders use your credit score to determine the likelihood that you’ll repay the loan on time. Having a strong credit score — at least 700 — will help you qualify for a lower interest rate and more amenable loan terms.
A debt-to-income ratio of 43% or less: Divide your total monthly debts by your gross monthly income to get your DTI. Like your credit score, your DTI helps lenders determine your capacity to make consistent payments toward your loan. Some lenders prefer a DTI of 36% or less.
A home equity loan is better if:
You don’t want to pay private mortgage insurance: Some cash-out refinances require PMI, which can add hundreds of dollars to your payments, but home equity loans don’t.
You can’t complete a refinance: With rates rising, it’s possible that your mortgage rate is lower than current refinance rates. If that’s the case, it likely won’t make financial sense for you to refinance. Instead, you can use a home equity loan to take out only the money you need, rather than replacing your entire mortgage with a higher interest rate loan.
A cash-out refinance is better if:
Refinance rates are lower than your current mortgage rate: If you can secure a lower interest rate by refinancing, this could save you money in interest, while providing access to a lump sum of cash.
You want only one monthly payment: The amount you borrow gets added back to the balance of your mortgage so you make only one payment to your lender every month.
Less stringent eligibility requirements: If you don’t have great credit or you have a high debt-to-income ratio, or DTI, you may have an easier time qualifying for a cash-out refi compared with a home equity loan.
Lower interest rates: Cash-out refinances sometimes offer more favorable interest rates than home equity loans.
Tips for choosing a lender
You’ll want to consider what type of financial institution best suits your needs. In addition to mortgage lenders, financial institutions that offer home equity loans include banks, credit unions and online-only lenders.
“Select a lender that makes you feel comfortable and informed with the home equity loan process,” said Rob Cook, vice president of marketing, digital and analytics for Discover Home Loans. “Look at what tools a lender makes available to borrowers to help inform their decision. For many borrowers, being able to apply and manage their application online is important.”
One option is to work with the lender that originated your first mortgage as you already have a relationship and a history of on-time payments. Many banks and credit unions also offer discounted rates and other benefits when you become a customer.
Some lenders offer lower interest rates but charge higher fees (and vice versa). What matters most is your annual percentage rate because it reflects both interest rate and fees.
Ensure the specific terms of the loan your lender is offering make sense for your budget. For example, be sure the minimum loan amount isn’t too high — be wary of withdrawing more funds than you need. You also want to make sure that your repayment term is long enough for you to comfortably afford the monthly payments. The shorter your loan term, the higher your monthly payments will be.
“Costs and fees are an important consideration for anyone who is looking for a loan,” Cook said. “Homeowners should understand any upfront or ongoing fees applicable to their loan options. Also look for prepayment penalties that might be associated with paying off your loan early.”
No matter what, it’s important to talk to numerous lenders and find the best rate available.
How to apply for a home equity loan
Applying for a home equity loan is similar to applying for any mortgage loan. You’ll need both a solid credit score and proof of enough income to repay your loan.
1. Interview multiple lenders to determine which lender can offer you the lowest rates and fees. The more companies you speak with, the better your chances of finding the most favorable terms.
2. Have at least 15% to 20% equity in your home. If you do, lenders will then take into account your credit score, income and current DTI to determine whether you qualify as well as your interest rate.
3. Be prepared to have financial documents at the ready, such as pay stubs and Form W-2s. Proof of ownership and the appraised value of your home will also be necessary.
4. Close on your loan. Once you submit your application, the final step is closing on your loan. In some states, you’ll have to do this in person at a physical branch.
FAQs
As of March 27, average home equity loan rates are 8.73% for a $30,000 10-year home equity loan and 8.70% for a $30,000 15-year home equity loan — higher than the average rate for a 30-year fixed rate mortgage, which is currently 7.01%. Both home equity rates and mortgage rates started off at historic lows at around 3% at the beginning of 2022 and have been consistently climbing in response to the Federal Reserve aggressively raising the benchmark interest rate.
Most lenders will allow you to borrow anywhere from 15% to 20% of your home’s available equity. To calculate your home equity, subtract your remaining mortgage balance from the current appraised value of your home. How much equity a bank or lender will let you take out depends on a number of additional factors such as your credit score, income and DTI ratio. For most homeowners, it can take five to 10 years of mortgage payments to build up enough tappable equity to borrow against.
A home equity loan can affect your score positively or negatively depending on how responsibly you use it. As with any loan, if you miss or make late payments, your credit score will drop. The amount by which it will drop depends on such factors as whether you’ve made late payments before. However, HELOCs are secured loans that are backed by your property, so they tend to affect your credit score less because they’re treated more like a car loan or mortgage by credit-scoring algorithms.
Lenders are currently offering rates that start as low as 5% to 6% for borrowers with good credit, but rates can vary depending on your personal financial situation. A lender will base your interest rate on how much equity you have in your home, your credit score, income level and other aspects of your financial life such as your DTI ratio, which is calculated by dividing your monthly debts by your gross monthly income.
Home equity loans can be used for anything you choose to spend the money on. Typical life expenses that people usually take out home equity loans for are to cover expenditures such as home renovations, higher education costs like tuition or to pay off high-interest charges like credit card debt. There’s a bonus for using your loan for home improvements and renovations: the interest is tax deductible.
You can also use a home equity loan in the event of an emergency like unplanned medical expenses. Whatever you chose to use your loan for, keep in mind that taking out a large sum of money that accrues interest is an expensive choice to carefully consider, especially because you’re using your home as collateral to secure the loan. If you can’t pay back the loan, the lender can seize your home to repay your debt.
Methodology
We evaluated a range of lenders based on factors such as interest rates, APRs and fees, how long the draw and repayment periods are, and what types and variety of loans are offered. We also took into account factors that impact the user experience such as how easy it is to apply for a loan online and whether physical lender locations exist.
The constraints of a Brooklyn town house renovation might, at first glance, seem rigid and prescriptive—stacked floors, each long and narrow, bound by four exterior walls, the front one often landmarked. Inside, the primary challenge is universal: how to best bring light into that interior core. But as the architecture firm Leroy Street Studio was recently reminded, the idiosyncrasies of this classic building type can be as varied and compelling as its inhabitants.
Six years ago, the Leroy Street team was approached by Jeanne and Dennis Masel, a creative and philanthropic couple who had recently purchased a historic home in Park Slope. Originally designed by architect Fred W. Eisenla, the 1910 property hews to the British Regency style, with bowed windows, a limestone façade, a central entrance, and a street-level stoop. This was not, in other words, your typical brownstone.
Nor were the Masels your typical clients. In describing their vision for the home, Dennis, a free-spirited entrepreneur, musician, and film producer, is quick to invoke rock ‘n’ roll and fun as guiding principles. Jeanne, the founder of Art for Change, brought her own yen for whimsy and adventure, not to mention a dynamic trove of contemporary works. “Our architectural ambition had to match her commitment to art,” says Leroy Street partner Shawn Watts. “The house was already beautiful on the street but it didn’t have the spatial complexity that the clients needed for their collection.”
So he made a bold pitch: Why not completely reimagine the rear half of the house, replacing three levels with two so as to yield high ceilings and ample wall space? Whereas the lower half of that pair now contains the kitchen, dining area, and sunken family room, the upper comprises the formal living room and library. “That was our big move,” Watts explains of the staggered floor plates, noting that “by making this surgical intervention we then had to reunite the front and back.”
To do so they created a sculptural but functional staircase, with fluid curves that shift to reveal a skylight only upon ascent. Its glow, however, is felt throughout the house, fulfilling the elusive promise of a bright core. Sun, all the while, bathes the family room and library thanks to sliding window walls. “It feels like you are in the garden,” says Watts. Those blurred indoor/outdoor lines continue to the primary suite, which has a terrace of its own, as well as to the penthouse addition, which can open up to fresh air on two sides.
Art, of course, remains the focus. The mud room, accessible via a street-facing side entrance, was designed specifically for a circular work by Takashi Murakami. Framed by an archway, it now pops against magenta walls—a hue echoed in the Tracey Emin neon piece at the base of the staircase. Elsewhere are works by past collaborators with Art For Change, which partners with nonprofits to raise funds through the sale of prints. Those include the dining area’s paintings by Danielle Orchard and Hyegyeong G. Choi, and the primary bath’s site-specific mosaic by Summer Wheat. “We talked a lot about having the unexpected around each corner,” Dennis reflects of the overall mix, which remains in flux as the couple rotates pieces in and out of storage.
Maximalism home décor is the “in” home design trend for 2024 and includes bold colors and unique pieces. By using maximalism for staging, sellers can highlight a home’s features and personality.
CHICAGO – Allie LeFevere describes her maximalist Chicago home as colorful and eclectic. When she and her husband moved into their home four years ago, she didn’t have a specific design in mind.
“I just wanted the house to feel vibrant,” says LeFevere, founder of branding agency Obedient. She wanted “a representation of our lives and the places we’ve explored and the memories we’ve made.”
The philosophy behind maximalism decor is “more is more,” according to Jean Whitehead, a senior lecturer on interior design at Falmouth University in county Cornwall, England. Bold colors, textures and unique pieces define this style, elements of which Vogue magazine says are “in” as design trends for 2024.
Going maximalist in your home can seem daunting and expensive — but it doesn’t have to be, say those who favor a bold aesthetic. Here’s how to achieve a maximalist look on a budget.
Shop at thrift and vintage stores
“One of the more economical ways to explore maximalism is through vintage and antique things that are available at thrift stores and estate sales,” says Daniel Mathis, who runs the Instagram account Not A Minimalist with over 70,000 followers.
Mathis’s home in Oklahoma City showcases his maximalist style, including many pieces purchased second-hand. To get a good bargain, Mathis suggests waiting until the last day of an estate sale when prices are typically reduced.
Alex Ammar, a certified financial planner and owner of Paradox Financial based outside Orlando, Florida, recommends setting a budget and decorating in stages.
“You might have different budgets for different tiers of interior decorating,” Ammar says. Second-hand and discount stores are great for decor and accent pieces, while you may spend more on distinct furniture, like a sofa.
Make it yourself
Maximalism can mean applying your own creativity to a space. Be bold with reinventing old furniture or items you have around the house. When Mathis fell in love with the Southwest design of a rug, he used the fabric to upholster an armchair in his sitting room.
For a simpler project, you can individually frame travel photos or children’s artwork and hang them together to create a gallery wall above a couch or along a hallway.
Finding ways to reimagine pieces already in your home adds a layer of individuality to the decor while saving you money. Look through your home for items that could use a boost, and browse art and home supply stores for ideas and tools you may need to revive them.
Consider meaningful pieces
Including noteworthy pieces in your decor is a way to create a one-of-a-kind space —- and it doesn’t have to be pricey. Keep an eye out for items that stand out to you, and be flexible, which can mean building up a collection over time or making minor alterations to a piece.
Mathis started collecting rare Ozark Roadside Tourist pottery about seven years ago. He currently has 150 pieces of the multi-colored, marbleized pottery.
“That’s maximalism for me,” says Mathis. “It’s about lots of color, lots of patterns … but I tried to do it in a very intentional and curated way.”
He purchased his first vase for $50; now, similar Ozark Roadside Tourist vases can sell for nearly $1,000.
LeFevere says her favorite piece in her home is an antique pie cabinet with mesh screens that she painted pastel green to match her kitchen.
“I’m not cooking any pie in my life,” LeFevere says, but the piece is “just really cool.”
Find your own style
LeFevere and Mathis both highlight the importance of knowing what you like while staying open to designs that surprise you. LeFevere visits sites like Pinterest to find styles or decor she likes and saves the images to a Google doc.
Similarly, Mathis built his personal style by clipping photos from decor magazines. He says the fun in maximalist design is the process of discovery.
By knowing what you like, you’ll be able to assemble pieces to fill your space, whether you find them in a thrift store, create them yourself or invest in a special piece.
Ammar says it’s also important to know yourself when it comes to money and how you manage expenses that arise from redecorating, especially if you’re financing purchases.
“If you’re the kind of person who can handle carrying debt, then it can be a really beneficial way to accelerate your timeline,” he says.
Maximalism is about having a home that reflects you and your life rather than any prescribed blueprint. Fill your space with color and mementos to create an aesthetic that brings you joy every time you walk in.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Las Vegas, NV, isn’t just a place for tourists to enjoy; it’s also an exciting city for locals. Known for its bright lights and endless entertainment options, living here means you’re never far from an adventure. But “Should I move to Las Vegas?” is a question many wonder. Beyond the Strip, this city offers unique neighborhoods and a desert landscape that’s perfect for outdoor enthusiasts. Las Vegas combines the thrill of a 24/7 city with the comforts of home, making it a one-of-a-kind place to live. Before packing your bags, it’s important to know the city’s strengths and weaknesses to make sure it’s the right fit for you. In this article, we’ll discuss the pros and cons of living in Las Vegas that may help you make your decision. Let’s get started.
Las Vegas at a Glance
Walk Score: 42 | Bike Score: 46 | Transit Score: 36
Median Sale Price: $430,000 | Average Rent for 1-Bedroom Apartment: $1,280
Las Vegas neighborhoods | houses for rent in Las Vegas | apartments for rent in Las Vegas | homes for sale in Las Vegas
Pro: Vibrant nightlife
Las Vegas, known globally as “The Entertainment Capital of the World,” offers an unparalleled nightlife experience. From world-class DJs at top-tier clubs to iconic shows and performances, the city caters to every taste and preference. The Strip lights up with possibilities, making every night a potential adventure. This unique aspect ensures there’s always something exciting happening, no matter the day of the week.
Con: Extreme summer heat
The desert climate of Las Vegas brings with it extreme heat, especially during the summer months. Temperatures often soar above 100 degrees Fahrenheit, which can be uncomfortable and limit outdoor activities. While many indoor places are air-conditioned, the intense heat can be a significant deterrent for those wishing to explore the natural beauty surrounding the city or engage in daytime outdoor events.
Pro: World-class dining
Las Vegas offers amazing dining experiences, featuring restaurants from renowned chefs from around the globe. Restaurants like Joël Robuchon at MGM Grand, led by the legendary French chef, offer exquisite tasting menus featuring meticulously crafted dishes. Additionally, Las Vegas is home to celebrity chef restaurants like Gordon Ramsay’s Hell’s Kitchen at Caesars Palace and Bobby Flay’s Mesa Grill at Caesars Palace. The city’s thriving food scene extends beyond the famed Strip. Local favorites like Lotus of Siam and Carson Kitchen showcase the culinary diversity and creativity that Las Vegas has to offer.
Con: Water scarcity
Being in the Mojave Desert, Las Vegas faces significant challenges with water scarcity. So much so that the city ranks #2 in U.S. for cities most at risk of droughts. The city relies heavily on the Colorado River for its water supply, which is becoming increasingly stressed due to overuse and climate change. This situation has led to water restrictions and conservation efforts that impact residents’ daily lives, from landscaping choices to water usage habits.
Pro: Outstanding entertainment and events
Aside from nightlife, Las Vegas is a hub for entertainment, hosting numerous concerts, sports events, and conventions, year-round. Sports enthusiasts can cheer on teams like the Vegas Golden Knights (NHL) at the T-Mobile Arena or the Las Vegas Raiders (NFL) at the stunning Allegiant Stadium, both located just off the Strip. The Las Vegas Motor Speedway hosts NASCAR races and other motorsport events, attracting fans from around the world. For those interested in conventions, Las Vegas is renowned for its expansive convention center. It features trade shows, expos, and conferences covering various industries, from technology and gaming to hospitality and healthcare. These events ensure that residents and visitors have access to plenty of entertainment options beyond the casino floors.
Con: Traffic congestion
With its popularity as a tourist destination, Las Vegas experiences significant traffic congestion, especially on The Strip and surrounding areas. Major events and conventions can exacerbate this issue, leading to longer commute times for locals. This congestion is a consideration for those who value ease of mobility and a more relaxed pace of life.
Pro: Thriving arts scene
Las Vegas is home to a thriving arts scene that goes beyond its famous shows and performances. The Arts District, located in downtown Las Vegas, is a testament to the city’s commitment to the arts, offering galleries, studios, and unique boutiques. First Friday events in this area showcase local artists and musicians, providing a platform for creative expression and community engagement.
Con: Limited public transportation
Compared to other major cities, Las Vegas has a low Transit Score of 36. While Las Vegas does have public transportation, options can be limited, especially outside of the central tourist areas. The reliance on cars can be a drawback for those without vehicles or those who prefer more sustainable modes of transportation. Efforts are being made to improve this, but it remains a consideration for daily commuting and travel within the city.
Pro: Access to healthcare
Las Vegas offers access to quality healthcare facilities, including the Cleveland Clinic Lou Ruvo Center for Brain Health and the University Medical Center. These institutions provide residents with advanced medical care and research opportunities. The presence of such facilities ensures that residents have access to some of the best healthcare services in the region.
Con: Dependence on tourism
The economy of Las Vegas is heavily dependent on tourism, which can be both a strength and a vulnerability. Economic downturns or global events that reduce tourist numbers can have a significant impact on the city’s economy. This dependence on a single industry can affect job security and economic stability for those working in and around the tourism sector.
Pro: Plenty of outdoor recreation opportunities
Las Vegas is not just about indoor entertainment; it’s also a gateway to some of the nation’s most beautiful parks and recreation areas. Residents can enjoy a short drive to Red Rock Canyon for hiking, rock climbing, or biking. Similarly, Lake Mead offers water sports and camping opportunities. These natural attractions provide a perfect escape from the city’s hustle and bustle.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.