But some things remain the same. Every year, as we shake off our winter hibernation (or stay-at-home orders), we take a walk around the yard to survey the work ahead. Spring is a common time to take stock of the current state of affairs of your home – inside and out.
This year, you’ve probably had a lot more time to analyze the maintenance and future plans for your home. Have you found small projects? Color changes? Big investments?
This is when the to-do lists get longer. We see peeling paint, a pool for that patch of grass, a new front door, or loose shingles that need replacing. Some needs. Some wants. Unfortunately, most people don’t have that much cash on hand to cover the full list of needs AND wants (especially if that list keeps growing the more you walk around your yard). In addition, have you noticed that one update leads to another to make the same project “complete?” The costs can add up fast. Sure, you have a credit card for the local home improvement store down the road, but is that your best option?
If you own your home, a home equity loan could be the answer you’ve been looking for to afford your dream before/after home projects.
Home equity loans differ from conventional or first mortgages. See our previous blog that explains the difference between the two. Home equity loans – sometimes called second mortgages – take the value of your home minus the amount you owe and allow you to use the cash difference to finance other goals or projects. By using the equity you have already paid into your home as a separate loan, you can accomplish all your projects right now and pay for them over a longer period of time at a fraction of a credit card rate.
Since home equity loans operate as secured credit, they have lower interest rates than unsecured debt like credit cards or personal loans. In addition, with the Tax Credits and Job Act of 2017, homeowners can deduct mortgage interest on home equity loans if it is used for home improvements.
Aside from major renovation projects, some additional reasons to take out home equity loans include refinancing your original mortgage, consolidate credit card debt into one monthly payment at a much lower interest rate, finance tuition costs, or paying for a wedding or vacation. Some have also chosen to use their home equity loans as emergency funds to keep a household running during unexpected income interruptions. The beauty of a home equity loan is you can use the funds for whatever you want!
Interested in seeing how much your home can help with your Spring to-do list? Check out our home equity loan rates and then you can securely apply online from the comfort of your own home at www.standardbankPA.com/applynow/.