Publish Date October 3, 2018
Maintenance and upkeep of a home can be expensive! Sometimes maintenance projects are expected and other times you may be caught completely off-guard. Either way, Fidelity Bank & Trust has a simple financing option that can help you with your fall fix-it projects - a Home Equity Line of Credit.
What is a HELOC?
A Home Equity Line of Credit is essentially a second mortgage that works like a credit card. Your spending limit is the equity in your home, and you are able to borrow against the equity to complete projects.
For example, if you own a home valued at $250,000, and the remaining balance on your mortgage is $150,000, you can receive a Home Equity Line of Credit based on a percentage of the difference. If your lender is able to offer a line of credit based on 75 percent of the equity, you would have a line of credit of $75,000.
“Every homeowner should consider having a Home Equity Line of Credit,” says Market President, Lisa Schiffer, NMLS#503199. “Opening an account in advance of a need allows peace of mind as well as access to the funds without any delay.”
Although the funds in a Home Equity Line of Credit are available to use on any expense, the funds on home repairs will help your home maintain its value and may even increase the value of your home.
“The sticker price on certain home maintenance projects can be intimidating, especially if you are living on a tight budget,” says Schiffer. “Using a Home Equity Line of Credit allows you to make those needed repairs while reducing the stress over cost.”
Here are a few ways to utilize a Home Equity Line of Credit to fix up your favorite room this fall.
Exterior Maintenance
While not exciting, every home will eventually need to make exterior repairs, such as replacing a roof or siding. The cost of such projects vary based on the size of your home but typically cost several thousand dollars.
New Windows
Like roofs and siding, windows do not last forever and can be costly. Home Advisor estimates that replacing a window can cost between $300 and $700 per window.
Replacing A Furnace or Water Heater
The average furnace lasts about 18 to 20 years. Water heaters have a life span of about 10 to 13 years. If your furnace and/or water heater are nearing their expiration dates, it may be time to replace them. Home Advisor estimates that the average cost of a new water heater – including installation – is more than $2,500. A water heater could run up to $3,000 if a homeowner opts for the tankless option.
Home Renovations
It’s easy to dream of ways to improve your home, whether it’s finishing a basement, installing new flooring, or remodeling a kitchen or bathroom, such projects can be expensive. The national average for a kitchen remodel, for instance, is more than $22,000, according to Home Advisor.
All of the projects listed above do not require you to save the full amount ahead of time. With a Home Equity Line of Credit, you can complete that project now and pay for it over time.
If you could benefit from opening a HELOC, contact us here or click here to learn more.