Fall is here. Sunsets are earlier, nights are cooler and pumpkin spice is all the rage. It's the perfect time for home improvements to get ready for the holidays and winter season ahead. Whether you're tackling necessary repairs or adding cozy updates, a home equity line of credit (HELOC) can help you fund your fall projects with ease.
Key Takeaways:
- Many homeowners use autumn to make home improvements and tackle home projects before the colder weather arrives.
- There are various borrowing options for home improvements, including credit cards, personal loans, and Home Equity Lines of Credit (HELOCs).
- HELOCs offer flexibility and convenience by leveraging the equity in your home, providing access to funds for ongoing projects or unexpected expenses.
Common Home Improvement Projects
Fall presents an opportunity to reassess your financial goals and plan for the rest of the year. For homeowners, that may mean prepping your home for the colder winter months, tackling any much-needed home repairs or even focusing on a home renovation ahead of the holidays.
Some popular fall home projects include:
- Caring for your gutters
- Repairing or updating your roof
- Winterizing your exterior plumbing – faucets and sprinklers
- Updating your furnace and cleaning or replacing filters
- Prepping your fireplace for use
- Sealing gaps and adding insulation
- Installing new windows
- Painting your home’s exterior
- Updating major appliances or electronics
- Remodeling the kitchen, bathroom or guest room
These projects range from easy fixes to much more involved and costly renovations. Luckily for homeowners, there are various borrowing options for you to consider when making your home improvement plans.
Popular Home Improvement Financing Options
Understanding the many options available in the industry is important in helping borrowers make an informed decision. Depending on the scope of your project and the funds needed to complete it, a credit card or personal loan may be a suitable choice. However, these loan types often have higher interest rates and may not be appropriate for larger projects that you plan to pay back over a longer period of time.
Home Equity Lines of Credit
A popular option for home improvement financing is a home equity line of credit (HELOC). HELOCs conveniently allow you to take advantage of the equity you’ve built in your home. By using your home as collateral, you’ll be able to access a revolving line to credit that can be used again and again up to your available limit.
HELOCs have a variable rate and offer an interest-only payment option for lower monthly payments. However, you can always make voluntary principal payments during the HELOC’s draw period; keeping in mind that at maturity, the remaining account balance will be due.
You can use your HELOC for home improvements or even to consolidate debt, pay medical bills, assist with college tuition and more. This an ideal option for tackling projects as you go or simply to use as a backup for unexpected emergencies and repairs.
Plus, you’ll only pay interest on the funds you use. There may also be potential tax advantages. You should consult your tax advisor regarding the tax-deductibility of interest when considering your funding options.
To discuss your goals and the borrowing solutions available with Civista Bank, contact a Civista banker.
