Most homes are works in progress, and home remodeling projects are often needed to ensure your house continues to meet the needs and desires of your whole family. And while you might want that new kitchen or bathroom remodel now, the money isn’t always right there when you need it most.
A home equity line of credit (HELOC) could be the answer if you want to make home improvements on your San Diego home now but don’t want to front the costs. A HELOC makes it possible for you to use your home’s equity to your advantage.
San Diego's Mission Federal Credit Union allows you to borrow up to 100 percent of your home’s equity with low interest rates, favorable terms and potential tax savings (consult your tax advisor). By using a HELOC from Mission Fed, you can access funds as needed up to an agreed upon credit limit to make those necessary projects happen.
5 Ways You Can Benefit From a HELOC
1. Your home remodeling projects don’t have to wait.
You spend a lot of time in your home, and once you've decided you can’t survive another day with the old appliances in your kitchen or your outdated bathroom, it’s hard to hold off projects long enough to save money to cover the total cost up front. A HELOC can give you the freedom to make those needed renovations now, rather than live without them for another few years.
2. You can take advantage of good deals while they last.
Good deals on everything from contractors to building materials come and go, and they don’t always come on your schedule. A HELOC enables you to take advantage of good deals when they’re available, ultimately saving you money in the long run on those big home projects.
3. Your savings can stay in the bank.
It's important to have some savings in the bank for emergency expenses. Using Mission Fed's HELOC can ensure your savings stay put without forcing you to forego those remodeling plans.
Read: Should I Use My Home's Equity to Pay Off a Loan With a High Interest Rate?
4. Continue to improve your house to increase value.
A house is a major investment, and most homeowners want to keep their homes updated so the value can increase. Making home improvements on your house now can potentially help you get your investment back — and then some — if you decide to sell.
5. Plan out projects for when you have the time.
Some times are just right for home remodeling projects, and other times are too hectic. For example, if you want to make some improvements before Baby No. 1 comes, getting a HELOC from Mission Fed means you can tackle that second story addition or new pool when the time’s right for you. Plus, you can use the funds from your HELOC as you need them and only pay interest on that amount.
A HELOC from Mission Fed can give you the flexibility you need to be proactive with those home remodeling projects and start them whenever you desire.
All San Diegans are welcome. All accounts and loans are subject to approval.
Mission Federal Credit Union is a GOBankingRates client.
Disclosure: The Home Equity Loan is a variable rate product with a maximum rate of 18%. All accounts and loans are subject to approval. Programs, rates, terms, conditions and services subject to change without notice. Equal Housing Lender. 3/15