Hello September! As summer fades
away and the fall and winter months approach, you might be thinking about all
of the wonderful holidays arriving. If you're hosting this year's festivities,
you may be looking around at your house and thinking of all the projects you'd
like to get done before showing off the house to loved ones. Did you know that
you can WOW your guests with new home improvements this year without draining your savings account?
With a home equity loan, you can take your home to the next level without
breaking the bank.
What is a home equity loan?
It's a loan you can qualify for
based on the difference between your
home's current market value and how much you still owe on the property.
Essentially, it's the amount that you have paid off and own. This loan allows
you to boost the value of your home (aka equity) while making the changes
you've always wanted to do. Still not sure? We've outlined the major benefits of
using a home equity loan.
#1 - Lower interest rates.
Home equity loans and home equity lines of credit (HELOC) are the two main
options to choose from when going this route. These loans are secured loans,
meaning you can get lower rates, because it uses your home as collateral. So, if
you're going to do any home renovations, these two options would be the way to
go in terms of interest rates.
#2 - Better repayment plans.
Some home improvement loans require much shorter loan terms, which means if
you're not looking to pay large sums of money each month, a home equity loan
might be your best option. Telhio offers home equity loans with up to 20-year
repayment periods, which gives you the financial flexibility you need.
#3 - Possible tax deductions.
If you're making improvements that go beyond cosmetic upgrades, possibly a
medically necessity or an energy-efficient modification, the interest you pay
may be tax-deductible. We recommend looking closely at your improvement plans and
consulting your tax advisor to see if this benefit applies to you.
#4 - Increase the value of your
home. As mentioned previously, home equity loans can boost the value of
your home significantly. Considering today's housing market, the renovations
you make could help you sell for much more than you expected. Whether you plan
to sell soon or you just want to improve your home to enjoy it yourself, home
equity loans have can give you more bang for your buck.
Talk to one of our experts at Telhio Credit
Union to explore your loan options. Learn more at www.telhio.org
