Financing Renovations With Your Home Equity
President of CU Network Services (NMLS# 364852)
CU Network Services (NMLS# 375459)
If you are a home owner planning to remodel, don’t forget that the equity you have in your home could be your best source of financing. The rates for a Home Equity Line of Credit are still low, so why not put that equity to work for you now.
In addition to financing renovations, a Home Equity Line of Credit can be used to help pay for school tuition and any number of other high ticket items.
Whether you plan to remodel your home to entice potential buyers or to just give it a fresh, new look, the money spent on improvements can potentially increase its overall value.
Typically, home owners can expect a good return of investment on renovations. But in order to get the best rate of return and to avoid over-renovating, it’s important to choose the right home improvement projects and take the time to figure out the finances.
Kitchen and bathroom renovations can sometimes be the most costly but are also the most likely to pay for themselves should you decide to sell. For example, if $30,000 was spent to remodel a kitchen, that newly renovated kitchen could represent $60,000 in an appraisal. Even small kitchen repairs and improvements, such as replacing fixtures, painting, and refinishing surfaces, can add significant value. Projects such as room additions that increase the home’s square footage can generate a direct return on investment. Another option to add value to your home is to upgrade to energy-efficient appliances and technology, such as solar water heating and photovoltaic systems.
Renovating not only increases your home’s value, but can help to sell it faster. The majority of home buyers, particularly young, first-time buyers, are looking for homes that are move-in ready. Even the saleability of apartment units in older buildings can be enhanced by remodeling if they are upgraded with the same features as new units but priced more affordably.
No two renovation projects are exactly the same, and each home owner’s financial resources are unique, so it’s important to find the loan program that best fits your needs. At Hawaii Central Federal Credit Union you’ll find many options to help you achieve your goals. Highly experienced Home Loan Specialists are available for a free consultation to assess your financial situation and get you prequalified to determine how big a renovation project you can undertake.
If you choose to open a Home Equity Line of Credit for your project, you can be approved and funded in just two weeks to help get your renovation project started promptly!
The Hawaii Central Federal Credit Union Home Loan Specialists know how stressful this process can be and are there to provide you with the best possible service every step of the way. To apply for a Home Equity Line of Credit or for information about any other Home Loan product, please call 529-4599.
Home loans are provided by CU Network Services, which is a wholly-owned subsidiary of Hawaii Central Federal Credit Union (NMLS# 375459).