Preparing to make updates or additions to your home can be financially straining. Aside from purchasing the things needed for the update, like new flooring, cabinets, windows, or appliances and furniture, you also might be paying a contractor or professional for their time and expertise. In addition, you’ll want to be mindful of any issues a contractor might run into that would require additional costs. The price tag for updates and renovations can vary by project, and you’ll want to ensure you budget appropriately for each. While not everyone has a lump sum of money saved in their First Bank Savings Account for renovations, many look at other financial options to help pay for these costs.
Credit cards and a home equity line of credit (HELOC) are two popular options people look toward for financial assistance when paying for home updates. It may be simpler to put some these costs on your credit card, but often, a HELOC makes more sense for large financial needs. When you use a credit card, a CNBC report is advising to stay below a 30% credit utilization rate, and below 10% if you want an excellent credit score. This can be difficult if you have a low credit amount available and a costly project. You’ll also be responsible for making monthly payments when the charge starts appearing on your statements. Because of these things, a HELOC loan makes a very attractive solution for financing home updates.
Learn more by reading Invest Back Into Your Home with a Home Equity Line of Credit.
Here are some benefits of using a HELOC:
- You’re eligible to get a credit line of up to 80% of your home’s equity.
- Initially, you’ll only pay interest on the money you’ve actually used.
- You have the ability to access the funds multiple times for a variety of needs.
- Take up to 15 years to repay the principle after the draw period ends.
- Take advantage of no closing costs on lines up to $500,000 for standard documentation.
Learn how you can take advantage of First Bank’s special HELOC offer.
As you start planning for your home improvements or updates, consider using the funds in your home’s equity that you’ve already acquired. A HELOC home loan is a great way to fund projects, as you’ll be able to use the funds many times for multiple projects, like a new roof in the spring or a new pool in the summer. If you are interested in how a HELOC can help your home improvement needs, contact a trusted First Bank representative.