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.
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.
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:
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.
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.