You can probably think of ways your home could be more comfortable, more practical or more modern. Sure, you could move but you love the neighborhood and you also love your house.
Without the cost of moving, home improvement is an option to make a difference in your lifestyle and give your home some additional value.
What Are My Financing Options?
Home Equity Loan - With a home equity loan, also called a "second mortgage," you can borrow against the equity in your home. You receive the entire amount of the loan up front and the interest rate is fixed until the loan matures. You repay the loan back in fixed payments every month, which includes principal and interest. You can also pay off the loan at any time with no pre-payment penalties.
This is a good option if you know the exact cost of your remodeling project or need funds available at the beginning of your project.
Home Equity Lines of Credit - Similar to a home equity loan, you also borrow cash against the equity in your home. However, there are a couple of differences to the loan. With a line of credit, you may access your home equity through future advances up to a set amount. Instead of receiving the entire amount up-front, you receive a special checkbook to access your account as many times as you like during the access period up to your credit limit -- similar to a credit card.
In addition, the interest rate on a home equity line of credit is variable instead of fixed. This means the interest rate can change, either go up or down, depending on how the national interest rate moves. You only pay interest once you advance the money.
This may be a better choice if you don't yet know how much cash you'll need for your remodeling project or exactly when you'll need it. This is a good way to finance longer home improvement projects because it allows you to draw from a reusable source of cash.
Ready to start remodeling? Contact us to review your loan options today.