According to a Federal Reserve Bank report, 35% percent, the biggest share, of home equity loan dollars goes back into the borrowers house through home improvements and maintenance projects. Considering the benefits and the ease of leveraging the equity you already have through a second mortgage or mortgage refinancing, this is hardly a surprise. If you are wise about building equity you can earn it quicker with less investment. Some of the best ways to increase equity are simple such as:

1. Purchase a home in the right neighborhood: If the real estate values are rising, you could build equity without doing anything more than holding on to the property.

2. Maximize curb appeal: This is key to raising a home’s value. It doesn’t take much money to install irrigation and landscape a property, but the first impression from the outside can be worth a lot. If you have some equity in your property already, a home equity credit line may be a better way to fund these smaller improvements than using a credit card. The interest is lower and so are the payments.

3. Remodel the kitchen: If you really want to increase the value, start with the kitchen. Buyers are willing to pay more for a home with a gorgeous cook-friendly kitchen. If you are looking to do a remodel, mortgage refinancing is a good way to cash out on the equity that you already have and invest in building further equity. (Likely with a tax break on the interest as well.)

4. Don't overlook the Master Bedroom: Make bathroom improvements are also a good way to increase equity and can also be paid for through a refinance.

5. Sewat Equity Converts to Cash:Don’t forget small improvements with “sweat equity” either. Just a little bit of capital and a lot of muscle can greatly improve a home through painting, wall papering and other do-it-yourself upgrades.

Take a second, and put some effort into your appreciating secured asset. A liitle thought can go a long way in making your property your best investment!