As styles change, the décor within our homes do as well. Smaller projects, such as a new wall color or replacing outdated door handles can often give our homes a refreshing, updated look. These tasks help us feel accomplished in the ever-continuous modernizing of our homes.
Bigger projects however, such as new flooring, bathroom remodeling, a new roof, or new window installations can quickly become expensive. Oftentimes, these expenses eat at our personal budgets and take a toll on our savings accounts. An easy way to tackle projects without draining your cash is to use the equity in your home. There are two ways to access your equity and make the most out of your home update/remodel:
- Take advantage of great rates and refinance your home loan through Eastex Credit Union. Aside from benefits like potential lower monthly payments, you will have the ability to cash out your equity and to use toward your home remodeling needs. The renovations and remodeling can, in turn, increase the overall value of your home.
- Consider a home equity loan if refinancing is not the option for you by borrowing against your home’s equity. A major advantage is that the rates you see on home equity loans are oftentimes significantly lower than other types of personal loans and credit cards. According to Bankrate, “As of late June 2021, home equity loans have an average rate of 5.36%, while credit cards have an average rate of 16.09% and personal loans have an average rate of 10.49 percent.”1
Unsure of where to start? Here a few tips and tricks to get the process started:
Identify your home maintenance needs
Decide what projects are of the utmost priority and make a list. See if there is anything that needs dire attention and put those on top of the to-do list. These are usually the items homeowners tackle first during the renovation process, such as a structural integrity. If there are no immediate safety concerns, decide what project you would like to see most accomplished. From there, continue to list the other items that need renovating in your home.
Make a budget
After deciding on what major areas to focus on and renovate, establish how much equity you currently have in your home to give you an idea of what tasks can be accomplished. After estimating how much equity you have, begin to gather a few quotes from contractors for projects that need to be done and total the projected costs. This will give you a feel for how much the total expenses are going to cost.
Talk to one of our Mortgage Loan Officers
Eastex’s Mortgage Loan Officers can help assist you at any point in the process. Through assessing the value of your home and verifying personal details (such as credit score and financial standing), we can help assist with predicting the equity amount you will be approved for, allowing you to get started on home improvements right away. A lump sum of cash at a fixed rate that you’ve built towards will ultimately help you achieve your home maintenance needs and goals. Our experts can also determine what type of loan you will best benefit from.
Begin your renovation process
Now that you have an idea of the spending amounts for projects that need to be done and have accessed your equity, you can start the process of improvements! Benefits to remodeling or updating a home include increased home value if you sell your home in the future. This is especially true if you do plan on listing soon. If you don’t plant to list, you can enjoy the benefits of your home tailored to your preferences upon remodeling. You can enjoy the peace and comfort of a freshly updated home.
Whatever your home renovation needs entail, Eastex is here to make that happen! We provide expertise in assisting your transformative home needs through various loan options and guidance. Take advantage of great rates and access your funds today!