How to Use a Home Equity Loan
for Renovations and More

Taking out a home equity loan could be an effective way of paying for house upgrades or other major life expenses.

By Andrew Sheldon

Big expenses come at us throughout our lives, sometimes unexpectedly, sometimes planned. Regardless of the circumstance, you’ll need a way to finance these major purchases when they arise. If you own a home, your best course of action may be a home equity loan.

Home equity loans allow you to use your house as collateral and you can use the money for anything you like. Many people take out home equity loans to finance renovation projects that make their property more valuable.

Find out about AAA home equity rates and other mortgage services.

What are Home Equity Loans?

Also known as a second mortgage, a home equity loan allows homeowners to borrow money against the value of their home.

Home equity is calculated by taking the current value of your residence and subtracting your outstanding mortgage balance. For example, if your house is estimated to be worth $500,000, and you still owe $100,000 on your mortgage, then you have $400,000 in equity. Your loan will be borrowed against this total. Typically, most lenders will allow you to borrow up to 80% of the value of your property minus the first mortgage balance.

Home equity loans usually come with fixed rates. This means that home equity loans will be less expensive over the lifetime of the loan than financing your large expense via credit cards or other loan types. You may also be able to deduct the home equity loan interest payments from your taxes. We recommend consulting a tax advisor for personal tax guidance.

There is some risk involved. If you are unable to pay back the loan, the lender could choose to foreclose on your house. Therefore, you’ll want to be on sound financial footing before taking one out.

How Do Home Equity Loans Work?

Your home equity loan will be paid out in a single lump sum. This comes with its own pros and cons. On the bright side, you’ll have access to all the funds you need right away. But, since you’re not borrowing money as you need it, you’ll want a good estimate of how much money you need to borrow from the start. If your home renovation project costs less than the amount borrowed, you’ll still need to repay the entirety of the loan, usually in monthly installments that begin soon after the money is available.

If you’re unsure of how much money you will need, you may want to consider a home equity line of credit. Just like a home equity loan, a line of credit allows you to borrow against the equity in your home, but instead of receiving all the funds upfront, you can withdraw money as you need it. Line of credit loans function much like a credit card in that once you reach your credit cap, your balance will need to be repaid before you can withdraw more money.

What Can Home Equity Loans Be Used For?

Home equity loans do not need to be used on your home. The money can be spent on any big expense you need help financing, such as a wedding or business startup. One popular use for them is paying off credit card debt. Credit card interest rates are notoriously high. Paying off your credit card debt with funds from a home equity loan could save you a significant amount of money in the long term. It will also help consolidate your debt and make just one payment every month.

Although funds from a home equity loan can be used for anything, it’s important to note that interest from these loans is tax deductible if the funds are used on a home renovation project. Consult a tax advisor to see if your project is eligible.

There’s another convincing argument for using the loan on your home: It is a great return on investment. If you use the funds to add an extra bedroom, remodel the kitchen or install a pool in the backyard, you’re increasing the value of your property, which you will own entirely once your mortgage is paid off.

Let AAA help finance your project with a low-rate home equity loan.

1

Health Tip: Driving Ergonomics

The secret to being comfier behind the wheel.

Practicing correct posture while you drive isn’t just good for your health, it’s good for your safety on the road, too. It could help improve circulation, minimize fatigue and even reduce the risk of serious injury in a crash. Learn how to properly align your spine and get tips to maintain an ergonomic seated position when driving.

U.S. Ecotourism Destinations

Where to travel responsibly, domestically.

By Ellen R. Delisio

Typically, vacations are a time to chill, scrap the agendas and give little thought to what happens when you leave your destination. Ecotourism, though, is giving vacations a whole new look and mission. It means learning about the culture, history and environment of the places you visit and not causing any harm while you are there.

European cities like Zurich, Switzerland, and Copenhagen, Denmark, are the names that usually come up when discussing sustainable travel destinations. But ecotourism trips are popular and plentiful in the U.S., allowing travelers to relax and give back stateside.

It’s Easy Being Green

Not too long ago, ecotourism was a specialty niche, but now it is reshaping the travel industry. While ecotourism trips may sound like treks through the rainforests, swamps and jungles of the world – and some, of course, are – they can be booked anywhere. Many of the top destinations are in the U.S. 

Any trip can become eco-friendly if you spend less time driving and more time hiking, biking and cleaning up the environment, and opt for lodging with fewer frills and that supports the local economy.

U.S. Ecotourism Is Trending Up

The U.S. is rapidly expanding its spot in the ecotourism market. The nation’s sustainable tourism industry is nearly 7.5% of the global market. In 2023, that market’s estimated value was over $258 million, and it is projected to climb to above $663 million by 2033.

Interest in ecotourism is surging across all age groups, according to AAA Northeast travel advisor Brian Garland. 

AAA Travel is developing extensive expertise in the sustainable travel market and become a leader in ecotourism. It recently partnered with Tourism Cares, a nonprofit dedicated to the long-term survival of the travel and tourism industry, to create sustainable itineraries for popular destinations. 

Plan your eco-friendly vacation with the help of a AAA travel advisor.

1 2 3

Tourist Trapped: The Big Duck

Exploring the weirdest local tourist attractions and exiting through the gift shop.

By Sarah Hopkins

Roadside attractions are a staple of Americana, from giant balls of twine to palaces made of corn. But do such tourist traps deserve their bad rap? There’s a beauty and earnestness in kitsch that endears these landmarks to me, none more so than the Big Duck. 

The Big Duck in Flanders, N.Y., is a Long Island landmark. At 20 feet tall and 30 feet long, it’s about a zillion times bigger than a normal duck, give or take. Originally built in 1931 by farmer Martin Maurer, the duck advertised the eggs and ducks that were for sale within. The Big Duck is so iconic that the word “duck” is commonly used to describe novelty architecture that resembles the item it’s advertising.

You can’t buy ducks inside the Big Duck anymore, but you can buy souvenirs. I bought a mug and a button before I had to stop myself. The duck is also filled with memorabilia that tracks its journey over the past century. Duck docents within can give you a history of the duck, plus recommendations on what to do nearby. 

“Where are you headed?” the friendly docent asked when I arrived. 

“Here,” I replied. 

“What?” the docent said. “Why?” 

The Big Duck is not usually a destination itself, more like a stop on a long road trip. But I was just happy to finally see this icon of Long Island up close and personal. It’s so beloved by the community that there’s even an annual “duck lighting” in which the duck is draped in lights to celebrate the holiday season. It’s a festive compliment to the duck’s eyes, which emit a red glow every night. 

When they dig the duck up in 1,000 years, future humans will probably think we worshipped it. And in many ways, they’d be right.

Women Are Taking the Driver’s Seat

Women-only car and motorcycle clubs are all about building friendships and helping communities.

By Ellen R. Delisio

Women-only car and motorcycle clubs are all over the country and members find them the perfect outlet for making friends and talking about their vehicles. 

For the Love of Jeeps

“It’s all about woman empowerment,” said Shawnna Sanborn, executive director of the Jeep Girl Mafia Club, a national organization for female Jeep owners. “The women [in our club] empower one another; we build each other up and truly want to better our communities.”

Founded in 2019 by Nicole McGill, the club has about 26,000 members nationwide with multiple chapters and groups on Facebook. 

“The off-road community is male-dominated,” said Sanborn, explaining the club’s origins. “If women joined a Facebook group or asked a question about a Jeep, they would sometimes get discouraged. McGill created a safe place for women.” 

The Jeep Girl Mafia Club plans meets and shows, and hosts fundraisers and get-togethers throughout the year. 

“It's a community,” Sanborn said. “I moved from California to Texas and met all these friends because of my Jeep. 

“My favorite thing is when we receive emails or see posts or comments online about how Jeep Girl Mafia has helped so many women build their confidence or even find their own tribe within the club,” she added.

Driving More Women to Racing

On the tracks and roads, the New England Region Sports Car Club of America (NER SCCA) and its initiative SCCA Women on Track are striving to increase women’s participation in its events, which include rallycross, autocross, road racing and road rallies. Tamra Krystinik, who participates in both groups, said women can participate in any event. At some national competitions, there are women-only events, she added.

“There is a certain level of camaraderie with women. They are supportive, and you have a great time,” Krystinik said. She also competed in an open autocross event and won a national championship, only the fourth woman to win an open national championship. 

“There’s a stigma that racing is a guy’s thing,” Krystinik said. “But the more women who get involved, the less stigma there will be.”

Women who appreciate cars have always been around, and now, clubs are giving them fellowship and influence.

“I think 100% more women are interested in cars than most people realize,” Stone said. “Manufacturers are realizing that women do like cars – they are offering them in more vibrant colors and wrapped colors.”

Get Your Motor Running

Waves of women are also hitting the highways on their motorcycles. There are more than 100 women-only motorcycle clubs in the U.S., among them, the Sirens Women's+ Motorcycle Club of New York City. The 38-year-old club has about 69 active members, including some from Pennsylvania, New Jersey, Long Island and upstate New York. 

“We were seeking camaraderie and mutual support,” said Cheryl Stewart, one of the founding members. “There were just so many obstacles to motorcycle ownership for women [years ago]. We weren’t taken seriously when we took our bikes to repair shops or tried to purchase motorcycles.”

The Sirens have had the honor of leading Pride marches in the New York City area.

What to Know Before Buying an E-Bike

By Ellen R. Delisio

The status of e-bikes grew rapidly in a short time, from novelty to cheap transportation, to exercise with a boost.

That rapid growth led to a kind of Wild West atmosphere, with use outpacing public policy in some areas. It has taken a while for regulations to catch up and questions remain, according to Mark W. Hoffacker, director of bicycle safety education at the New York Bicycling Coalition. “Even law enforcement is trying to get up to speed,” he said.

For those considering buying an e-bike, there are laws and practices you should be aware of, especially since riders do not always need licenses or insurance to ride. Speed is regulated in many states based on the three-tier classification of e-bikes, but other laws are not as well-known. 

Forty states have a minimum age for riding an e-bike, ranging from 14 to 18. For most of the Northeast, the required age is 16, except for New Jersey, where it is 15. Twelve states, including Massachusetts and New Jersey, require motorized bicycle riders to carry an operator’s license. Thirty states prohibit riding an e-bike on a sidewalk.

Read more about the e-bike experience.

1 2