2025 is a year that has brought a lot of uncertainties with it. This is a great time to own a home, however, because a home is something solid. No matter what happens to the markets, a home is a place you can live. It fills a practical function, even if its value takes a temporary drop.
If you have some extra money to invest in your home, you might be wondering what some smart upgrades would be right now. Let’s check out a few ideas.
- Improve energy efficiency. One thing you may want to do is take some steps to make your home more energy efficient. The exact upgrades that will be helpful will depend on the current design and materials for your home. But here are a few possible ways to boost energy efficiency.
- Replace single pane doors and windows with double pane doors and windows.
- Seal leaks around your windows and doors.
- Upgrade your HVAC system or get it maintained.
- Install programmable thermostats.
- Upgrade your insulation or add insulation to areas where it is absent.
- Plant trees for shade in strategic locations.
The benefits of these upgrades is that your home will not need to consume as much electricity to stay warm in winter or cool in summer. You will save money as a result and reduce your carbon footprint. Both are key in 2025, when we are facing economic and environmental challenges.
- Install alternative power sources. Along with taking steps to reduce the energy consumption of your home, you can also reduce your home’s reliance on the grid. You can do this by installing alternative power sources. The most popular way to do this is to install a solar power system. The initial outlay can be expensive, but there may be rebate programs available in your area. Over time, you will save money on your electric bills, which means in the long run, the project should pay for itself.
- Enhance a room or suite for tenants. One more project that can be useful heading into times of economic uncertainty is one to convert or improve a section of your home to house tenants. Alternately, you could add an accessory dwelling unit (ADU) to your property if zoning regulations allow it. There is an affordable housing crisis going on right now. It makes sense for homeowners to leverage that to hack their own mortgages, especially with cost of living rising for all while wages are stagnant. A few hundred dollars a month coming in from a tenant can help stabilize your budget. If you don’t end up bringing in tenants, there are plenty of other ways you could repurpose the room or ADU you prepared. You could use it for guests, as a home office or studio, or some other flex space. SO, it ends up being a valuable upgrade no matter what the future holds.
How to Finance Home Maintenance or Upgrades
The best way to finance home upgrades depends on your exact situation. In some scenarios, a home equity loan, a home equity line of credit (HELOC), or a cash-out refinance, that is, refinance for cash to pay for improvements, may be a good fit. Senior borrowers who qualify for a reverse mortgage may find that to be a flexible option also worth considering.
Quick overview of common options:
Cash-Out Refinance: Replace your existing mortgage with a new one that’s larger than your current balance and receive the difference in cash for improvements. Consider closing costs, your new rate and term, and how long you plan to stay in the home.
HELOC: Revolving credit line secured by your home; draw funds as needed for projects and repay over time.
Home Equity Loan: Lump-sum second mortgage with a fixed rate and set repayment schedule.
Reverse Mortgage (for eligible seniors): Access home equity without monthly principal and interest payments; obligations and eligibility apply.
We are based in Columbus and can connect you with affordable financing anywhere in Ohio. To get started, please give us a call at (614) 505-0620. During your consultation, we will help you compare options including whether a cash-out refinance makes sense and walk you through the steps to apply. All loans subject to credit approval, acceptable collateral, and program guidelines.
