Using a HELOC for Spring Projects

A person pointing at a calculator with a small wooden house sitting on the table.

As you venture outside during these sunnier days, you may notice areas of your home that could use some improvement. Whether it’s sprucing up your landscaping, creating an outdoor oasis, or tackling a home renovation that you’ve been thinking about during the colder months, warmer weather can be a great motivator to take on those home projects. But figuring out the financing for your home improvements can be challenging. If you own your home, a home equity line of credit might be the key to help you achieve your goals.

What is a HELOC?

A home equity line of credit (HELOC) is a type of loan that allows you to borrow against the equity in your home. Think of it like a credit card. You have a limited amount of credit that you can borrow from (in this case, equity), and you can borrow as much or as little as you need up to that limit. You only pay interest on the amount that is borrowed, and the funds are revolving, meaning you can repay them and borrow against your home’s value again without needing to open a new loan.

HELOCs are often used to fund home improvements, but they can be used to consolidate debt or pay for unexpected expenses, as well. Because a HELOC is secured by your home, it’s important to note that borrowing can be a risk. If you’re unable to make the payments, you may lose your home.

Funding Your Spring Projects

HELOCs can help you fund a variety of spring and summer projects around the house. If you’re looking to give your home a face-lift, there are a few projects to consider that can be financed with a HELOC:

  • Landscaping: Adding some colorful flowers, plants, and trees is a simple and effective way to boost the curb appeal of your home. A HELOC can be used to cover the cost of landscaping services or purchasing new plants and materials.
  • Outdoor living space: Transform your backyard into a private oasis. Enjoy the outdoors in style with a new patio, pool deck, or outdoor kitchen furnished using a HELOC.
  • Kitchen remodels: Cook up a fresh look with new countertops, cabinets, and appliances. A HELOC can help you finance your dream kitchen, creating a space that’s both functional and appealing.
  • Home repairs: If your home needs a new roof or HVAC system, rather than paying out of pocket or taking out a high-interest loan, a HELOC might be a better option to provide you with a lower interest rate.
  • Upgrades: What better way to beat the heat this summer than staying poolside at your home? You’ve probably guessed it…your pool installation can be funded with a HELOC.

While there’s no guarantee you’ll recoup the money you put in, remodeling or upgrading your home can be a smart investment as it can add value to your home.

Benefits of Using a HELOC

Since you’re tapping into your home’s equity, HELOCs can be a more affordable option than other forms of financing. HELOCs typically have lower interest rates than other personal loans or credit cards, making them a great choice for homeowners looking to fund renovation projects.

HELOCs are also flexible in terms of payment. Unlike traditional home equity loans, which have a variable interest rate and require you to make monthly payments, you only borrow the amount you need when you need it. With our HELOC Plus option, you can choose to lock in your interest rate with a fixed advance, or opt for a variable-rate advance.

A home equity line of credit can be the best option for financing your spring and summer home improvement projects. Be sure to consider the risks and costs associated with using your home as collateral. With careful planning, a HELOC can help you reach your home renovation goals.

Are you thinking about upgrades to your home? Put your home equity to work. Contact us today to talk about your equity options, including current rates.

Become a Member

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.