Home Improvement Loans - Thinking About a Home Project? Now is the Time!
Deciding which options are best for a home renovation can be intimidating and overwhelming. First things first, what’s your reason for doing a home project? Is the repair necessary, like replacing a dishwasher, or is the renovation a home improvement project you’ve wanted to do for some time? Assessing your needs and wants can help prioritize projects and their expenses. Here are some things to consider before starting a project.
DIY?
Consider ways you could save by doing some or all of the home improvement projects yourself. Beware: you could end up living with or paying someone to fix a half-finished repair or poorly executed project if you overestimate your DIY abilities. Before starting any project, be sure to create a home improvement budget that is doable. This will help you avoid letting projects grow out of control, both physically and financially.
Do Your Research
If you have the money already on hand for a smaller project, the process may only take a few days as you compare prices and estimates. For larger projects, doing research could take months. Check out home improvement blogs and podcasts for comprehensive information and tips. Ask for recommendations from friends and family as part of your process. When requesting an estimate, be sure to get a written quote from at least three sources.
Funding Options
Cash
If you have the cash to spend on a project, go for it! But how much should you spend on the renovation? Would it be better to hang onto the cash? Right now, most financial advisors recommend you hold on to your cash, given the current economic climate. If you do use cash, ideally you should put off the project until you can pay for it in full.
Dip Into Your Savings
Gathering the cash for a specific project is ideal, but what about dipping into your savings? In an ideal world, you should have a specific savings account for inevitable home repairs and projects. Financial advisors recommend that you set aside 1% to 3% of your home’s value every year for home maintenance.
Apply for a HELOC
Regardless of whether you have the cash, you potentially have another source for funding, a home equity line of credit (HELOC). A HELOC is similar to applying for a credit card and receiving a line of credit that you can use at your discretion. If your project is ongoing, or you want to pay for it in phases, a HELOC may be better than the cash option. Typically, better rates are offered with a HELOC than what credit card companies can offer.
Home Equity Loan
Commonly known as a second mortgage, home equity loans are lump sum payments that are repaid at a fixed interest rate over a set period of time.
Cash-Out Refinancing
Replace an existing mortgage with a new one for a larger amount of money. Withdraw the difference between your new mortgage and the old one. Sometimes you can snag a substantially lower interest rate than your current mortgage rate.
Unity Catholic Credit Union is here to help make your home project a reality with rates as low as 2.70% APR*! Since interest rates are at an all-time low, now is the time to use our home improvement loan. Our home improvement loan allows you to finance up to 15 years using the equity in your home. This includes NO fees!
APR=Annual Percentage Rate as low as 2.70%
Estimated monthly payment is $179.00 for $10,000.00 borrowed for 60 months
Must have 75% LTV (loan to value) equity position
Loan amount $10,000-$250,000.
Whether it be a home renovation, remodel, or other home projects, our home improvement loan can help you get your home just how you pictured it. Celebrate our 80th year by slashing prices by 0.80% APR*!
*Closing costs are waived. Offer, rate and term may vary depending on individual credit eligibility. All UCFCU programs, rates, terms and conditions are subject to change at any time without notice. Federally insured by NCUA. Additional insurance up to $250,000 through ESI a licensed insurance company and an Equal Housing Lender.*