Sign up for Hawaii home remodeling tips

Turning Your Focus On Home Renovations

By Mihe Muraoka
Senior Loan Officer/Underwriter

Can’t find that perfect home in today’s real estate marketplace? Consider turning your focus on adding value to your current home with renovations. This can be a challenging process, but with a clear plan and the right help, the reward of an improved home can be well worth it.

A home renovation can be a large investment, so having the right lender is just as important as having the right contractor or architect. With many different financing options available, finding the lender that will work hard to suit your personal needs and save you the most money is so important. Hawaii Central Federal Credit Union’s (HCFCU) home loan experts will sit down with you to set a personalized plan to make your home renovation project affordable.

Before you collect quotes from contractors, you should have an understanding of how much you can afford given your current financial situation. This will give you a clear picture to help keep renovation costs within your budget, rather than stretching your budget to fit these costs.

Depending on your situation and the amount you are looking to borrow, here are some popular financing options to consider.

Home Equity Line of Credit

A Home Equity Line of Credit is the most flexible financing option that allows you to borrow funds as you need them. Rates and monthly payments tend to be lower and may offer tax benefits.

Cash-out refinance

This enables you to take advantage of the equity you have built up in your home by refinancing your current mortgage balance to produce the cash amount you need for your renovation rather than taking out another loan to finance the project. With this refinance option, you maintain just one monthly payment.

Owner/Builder Construction Loan

This specialized and innovative loan is one of the best options for home owners planning to demolish their current home and build a new one. With a construction loan, funds are disbursed as the work progresses and the borrower has the option of interest-only payments during construction.

There are many factors to take into account when choosing a financing program for your home renovations, and keep in mind that the program with the lowest interest rate is not always the best option. HCFCU home loan experts are available for free consultations to help assess your financial situation and get started with a budget for your project. They will be able to advise you on the financing options that will best fit your needs.

Call 529-4599 to speak to any of the experienced home loan experts.

Home loans are provided by CU Network Services (NMLS# 375459), which is a wholly-owned subsidiary of Hawaii Central Federal Credit Union (NMLS#412820)


Open House Guide
Mortgage Rates