Homeowners have gained a lot of equity, with nearly half considered “equity-rich.” The decision between tapping home equity for renovations or selling and moving to a new home can be difficult. Moving offers fewer disruptions and the chance to cash in on home appreciation, but success depends on the local housing market.

Remodeling allows you to stay put and add value to your home. It also lets you keep a low mortgage rate if you have one. However, remodels can be disruptive, and funding can be challenging. Using home equity for renovations could also put you at risk of foreclosure if payments are missed.

When deciding between remodeling and moving, compare costs, consider goals and timeline, and research the local real estate market. The 30% rule suggests not spending more than 30% of your home’s value on renovations. Consult a real estate agent for guidance on making the best decision based on your unique circumstances and market conditions.

Read more at Yahoo Finance: Should you remodel your house or move?