We ALL “got to know” our homes last year, when the pandemic required us to live, work and play within the same four walls.
Over the past 12 months, you MAYBE identified a few home improvement projects that you are ready to do THIS year!
Arvest Bank’s Faviola Alba also has some ideas on how to financially integrate these projects into your plan.
Homeowners who don’t have the money to pay for a home improvement project, or the credit available on their credit card or additional financing options, may consider using their home equity for home improvement projects.
If you have some equity in your home, you can take out a home equity loan.
Banks give homeowners a loan based on that equity – the money you’ve already paid for your home – and that equity serves as collateral for the loan.
Homeowners pay on this loan until the loan is paid off.
Home equity loans generally have lower interest rates than a personal loan because your home is used as collateral.
Another option using the equity in your home is a Home Equity Line of Credit, or HELOC.
This is when banks offer a customer a line of credit to borrow against the amount of money they have paid for their home.
It’s like a credit card or a personal line of credit.
Homeowners borrow against the equity in their home, they repay that line of credit just as they would with a credit card or personal line of credit, and they can continue to borrow and pay off that line of credit until the end of the day. expiration of the line of credit. .
The difference between this line of credit, this credit card, or a home improvement loan is that you may be able to borrow more with this option.