Can You Use a Home Equity Loan for Refreshing Your Home for the Holidays?

It's true what they say, that there's no place like home for the holidays (cue cheesy Christmas music), but if you've been afraid to host because of the condition of your home, it may be time to consider making a change.

Refreshing your home for the holiday season isn't a terrible idea, and although interest rates are a little higher than they have been, it's still possible to secure a home equity loan to do just that. You'll still likely save over putting your remodel on a credit card.

What kind of holiday projects can you do with a home equity loan?

The great thing about a home equity loan or other type of second mortgage is that you can literally spend it on anything you want. If you want to be able to deduct the interest on your taxes, though, you'll have to use the money to improve your home in some way.

That doesn't mean you have to rip the kitchen out and replace it (unless you really want to). You can do other smaller projects that will get your home ready for holiday hosting in no time, including the following options.

Adding hard flooring

Hosting a Christmas party is no small thing, and having solid flooring that's easy to clean will be a welcomed update when everyone has left and you're cleaning up the mess. Look at options like laminate ($3 to $13 per square foot), luxury vinyl plank ($3 to $10 per square foot), or, if you've got the budget, something even more permanent like ceramic tile ($7 to $45 per square foot) for the busy areas. (Price estimates from Angi.)

Upgrading your appliance game

Clean-up for a party of 20 is a pain, there are no two ways about it. But you can make it easier by adding appliances built for the job. In-sink dishwashers ($1,099 at Home Depot) and dishwasher drawers (starting about $1,000, and available from big-box hardware stores and online) will give you more places to put small items like plates and silverware.

Added access to beverages via a built-in wine fridge (starting at $729 at Lowe's) or other high-capacity drink refrigerator with a see-through door (starting at $444 at Lowe's) can free up your time serving drinks to everyone.

Introducing additional seating

Just because other families use folding tables and chairs for hosting guests doesn't mean you have to. Adding a central bar or island with seating ($3,000 to $5,000 on average, per Angi) will give you additional hosting space, as well as places for guests to sit, so long as it's designed properly. Even if you're really into folding furniture, you can always use it as a serving surface.

Before you get too excited about tapping your home equity, though, make sure you check with several mortgage lenders for the best rates on your loan.

Small projects can serve you well this holiday season, but don't sacrifice the big stuff

Small projects can go a long way to upping your hosting game this Christmas, but big projects don't hurt anything, either, so long as you do them before or after the holidays. If you live where the weather is decent at Christmas, this winter may be the ideal time to start working on that outdoor space you've been dreaming of.

Can you imagine a better holiday party than one in your outdoor kitchen, warmed by a roaring fire in your outdoor fireplace? You can also expect a bit less mess and easier clean-up, since everybody is outside rather than running around inside your house.

Hey, a home equity loan unrealized is a dream undreamed, so you might as well go all out, especially if inheriting the title of holiday host for your family has been a goal of yours for a while. You can do all the decorating while your contractor is building out the ideal entertaining spaces for your clan.