Insights
November 19 2025
The housing market has many homeowners feeling stuck. Rising interest rates, limited inventory, and sky-high prices make the prospect of selling and buying elsewhere seem daunting. With mortgage rates stubbornly high, many homeowners who secured loans at 3-4% rates in prior years would face dramatically higher borrowing costs if they moved. But what if you didn’t have to move to get the home you want? For many homeowners, the answer lies in leveraging their existing equity to remodel now and potentially sell later.
Your home equity has likely grown substantially over the past few years. According to recent data, the average homeowner has gained significant equity, creating a powerful financial tool that can fund major improvements without requiring you to navigate today’s challenging real estate market.
Instead of giving up your low mortgage rate by selling and buying elsewhere at today’s much higher rates, you can tap into your existing equity through HELOCs (Home Equity Lines of Credit) to create the home you’ve always wanted – right where you are. Companies like Trovy are making this process more accessible with digital-first HELOC applications that can get you approved faster than traditional lenders.
Whether you’re a young professional, growing family, or established homeowner, your housing needs evolve over time. Rather than moving to find a home that fits your current lifestyle, smart equity-funded renovations can transform your existing space to meet your changing needs:
These modifications not only improve daily living but also add significant value to your home. Well-planned renovations appeal to future buyers while making your current living experience much more enjoyable.
Staying in your established neighborhood means maintaining relationships with neighbors you know and trust, keeping kids in familiar schools, and preserving the local knowledge you’ve built over time. You know the best restaurants, shortest commutes, and most reliable service providers – valuable assets that money can’t buy.
Adapting to How You Live Today Your home should reflect how you actually live, not how you lived when you first bought it. Remote work has changed how we use our spaces. Growing families need more room. Empty nesters want different functionality. Using your equity to upgrade can address these evolving needs:
Home Equity Loan: A home equity loan involves a lump sum with a fixed interest rate, ideal for projects with defined costs. You’ll know exactly what you’re paying each month, making budgeting straightforward.
Home Equity Line of Credit: A HELOC allows you to draw funds as needed during the project, paying interest only on what you use. It’s perfect for phased renovations or projects where costs might evolve and provides the most flexibility as the HELOC can be drawn down again and again after it’s paid back. Modern HELOC providers like Trovy offer streamlined digital applications and competitive rates, making it easier than ever to access your equity quickly when renovation opportunities arise. What’s more, with Trovy’s credit card feature, you can use your HELOC anywhere credit cards are accepted for renovation purchases and earn up to 3% cashback, effectively reducing your project costs.
Cash-Out Refinancing: A cash-out refinance of an existing mortgage is also an option. This involves replacing your existing mortgage with a larger one, and taking the difference in cash. However, this option rarely makes sense for most homeowners today. If you locked in a rate of 3-4% in recent years, refinancing would likely mean doubling your interest rate – making this the least attractive equity option in the current environment.
Building Future Flexibility By improving your home now, you’re creating options for the future. Your renovated home becomes more attractive to potential buyers if you eventually decide to sell, while also being more enjoyable to live in today.
Marketing Timing Freedom When you love your current home, you’re not forced to sell during unfavorable market conditions. You can wait for the right time, whether that’s when rates improve, inventory increases, or your personal circumstances change.
Equity Growth Potential Quality renovations can increase your home’s value beyond the cost of improvements, especially in desirable neighborhoods. This means your equity could grow even faster, providing more options down the road.
Using your home equity to remodel now rather than selling and buying elsewhere can be a smart financial and lifestyle decision. You avoid the transaction costs, stress, and uncertainty of moving while creating a home perfectly tailored to your needs. A HELOC is particularly attractive in today’s environment because it allows you to keep your existing low mortgage rate while accessing funds flexibly – drawing only what you need when you need it, and even redrawing from paid-down balances for future projects. Plus, the Trovy HELOC provides maximum flexibility when it comes to using your HELOC: you can use it wherever Mastercard is accepted.
Whether you’re planning to stay for decades or simply want to enjoy an upgraded home before eventually selling, strategic use of your equity can help you get more value from your most significant investment – your home.
The key is thoughtful planning, smart financing, and focusing on improvements that enhance both your daily life and your home’s long-term value. In today’s market, sometimes the best move is no move at all – just a really good renovation funded by the equity you’ve already built.
