The Best Way to Finance Home Improvements in Texas

Whether you're upgrading your kitchen, adding a home office, or boosting curb appeal, home renovations can add serious value to your property — especially in high-appreciation markets like Dallas-Fort Worth. But what’s the smartest way to finance those improvements?

For many Texas homeowners, the answer lies in home equity.

In this guide, we’ll walk you through how to leverage your home equity through loans and lines of credit to fund renovations, boost property value, and make smart financial moves — all while avoiding unnecessary debt.

What Is Home Equity?

Home equity is the difference between your home’s current market value and your remaining mortgage balance. For example, if your home is worth $750,000 and you owe $500,000, you have $250,000 in equity.

As your property appreciates (which is common in areas like Southlake, Frisco, and Prosper), your equity grows — giving you an opportunity to tap into it.

3 Ways to Tap Into Home Equity for Renovations

1. Home Equity Loan (HEL)

This is a lump sum loan based on your available equity. It has a fixed interest rate and is best for homeowners who:

• Know exactly how much they need
• Want predictable monthly payments
• Plan major one-time renovations (like a kitchen overhaul or pool installation)

Example: Borrow $100,000 at a fixed 7% interest rate over 15 years for a full home remodel.

2. Home Equity Line of Credit (HELOC)

A HELOC is a revolving line of credit, similar to a credit card, based on your home’s equity. You borrow only what you need — when you need it.

• Great for phased projects or ongoing upgrades
• Often comes with a variable interest rate
• Only pay interest on the amount used

Example: Open a $75,000 HELOC and use $15,000 to build a patio. Repay it, and that $15,000 becomes available again.

3. Cash-Out Refinance

This replaces your current mortgage with a new, larger one — and pays out the difference in cash. This option is ideal if:

• Interest rates have dropped since your original loan
• You want to simplify to one monthly payment
• You need more funding than a typical HEL or HELOC offers

Example: Refinance your $400,000 mortgage to a new $500,000 loan and use the $100,000 difference for renovations.

Which Option Is Best for You?

It depends on your renovation goals, how long you plan to stay in the home, and whether you prefer a fixed or flexible repayment plan. That’s where Emmly Financial comes in — we’ll help you evaluate the best path for your situation.

We’re Texas-based and specialize in helping homeowners in Dallas, Frisco, Southlake, and beyond access their equity the smart way.

Smart Renovation Projects That Add Value

If you're using home equity, focus on upgrades that boost your home's resale value or functionality:

• Kitchen Remodel: Always a top return-on-investment
• Bathroom Upgrades: Add modern fixtures, storage, or a second vanity
• Outdoor Living Spaces: Covered patios, built-in grills, or landscaping improvements
• Home Office Addition: Especially in high-income areas like Prosper
• Energy-Efficient Improvements: Solar panels, new windows, or HVAC systems

Affiliate Picks: Must-Have Items for Your Renovation

Laser Distance Measurer – Perfect for accurate room measurements during planning
Smart Light Switch Dimmer Kit – Instantly modernize your lighting
Complete Home Repair Tool Kit – Ideal for DIY fixes during renovations
Smart Deadbolt Lock – Upgrade your security with ease

How to Get Started

1. Check your equity: Get a home appraisal or ask your mortgage lender for an estimate
2. Review your credit: A score of 680+ usually helps qualify for better rates
3. Get pre-qualified: See how much you can borrow for your renovation goals