If you've been living in your house for several years, you likely have a few things you'd like to change about it. That's not to say that you don't love your space; however, as you and your family grow, your wants and needs change with respect to what you're looking for from a house. If you like the location you live and don't want to spend a ton of time and energy looking for a new home and moving, it might make more sense to focus on renovating or improving parts of your home instead.

An added benefit of renovating a part of your home is that it can improve the value of your home, so if you ever do plan on selling it, you can likely make the money you spent on your renovations back—and then some! That being said, how are you going to go about financing these new improvements? If you're wondering to yourself, "Can I borrow money on my home mortgage to pay for renovations?" the short answer is a definitive yes. Here's what you need to know about borrowing against your home's equity, as well as a few ideas for how to use that money!

How to tap into your existing home's equity.

As you might remember from the home loan application process, the loan amount you receive from your lender is equivalent to your home's value, minus your down payment amount. That being said, your home loan also includes interest payments as part of your monthly payment, and those interest payments don't go towards building your equity. This is why it's so important to be a borrower with a high credit score going into the mortgage process since a lower interest rate ultimately means that as a borrower you're building more equity more quickly.

Once you have begun to build equity, there are a few different ways to tap into it. For example, homeowners are generally able to borrow up to 80 percent of their home equity as a home equity loan. This means that if your house is worth $250,000, and you have $150,000 left in mortgage payments, you can access $80,000 of your $100,000 worth of equity. Keep in mind that that home equity loan will also have its own interest rate.

Another option is to take out a home equity line of credit, or HELOC. Unlike a home equity loan, which is disbursed as a single payment, a HELOC is a line of credit up to a portion of your home's equity with its own interest. HELOCs are a good idea for projects that could have variable expenses since if you come in under budget you aren't stuck paying interest on the difference between your home equity loan and what you spent. That being said, there are pros and cons of both, so it's not worth taking a few business days to consider which might be best for you and your project.

Home renovation projects to consider that are worth the investment.

You've probably heard that upgrading the kitchen or bathroom can really improve your home's value, and that's totally true. However, many people don't think about the exterior improvements they can make to increase their curb appeal and marketability. Improving the home's siding and roofing are two easy ways to not only make your home look nicer but provide greater structural stability, too.

Awnings are another classic way to add character to your home's exterior. From retractable pergolas to porch awnings, awnings have a valuable role to play in keeping you out of the rain and in the shade. Especially if you live in a place with the weather as wildly inconsistent as Chicago or another area in the midwest, a retractable awning can be a major selling point to potential buyers. Just Google "residential awnings Chicago," and you'll be sure to find a reputable company to make your dreams a reality.