HELOC vs. Contractor Home Improvement Financing
If you are thinking about making home improvements and don’t have the cash saved to do so, there are a couple of home improvement financing options available to you. Financing your home improvement project may be something you are considering. If so, this post is for you! Today, we will take a closer look at two of your home financing options to help you determine which would be best for you.
Home Equity Line of Credit (HELOC)
One of the most popular financing options used today to complete home improvement projects is a Home Equity Line of Credit or, HELOC. Therefore, loans are given based on the amount of equity in your home. It’s important to know the following about Home Equity Lines of Credit:
- A HELOC is essentially a second mortgage on your home. This means you are using your home as collateral. Consequently, failure to pay could put you in jeopardy of losing your home.
- It allows you to withdraw equity from your home up to a certain amount. Usually between 80-90% depending on your lender.
- Your lender will give you a HELOC with a determined set amount of credit, such as $20,000. It’s then up to you whether you tap into the money as you need it. Or you can withdraw it all in one lump sum.
- A HELOC is a line of credit. You make payments on what you borrow, not the amount available.
- Most HELOCs have variable interest rates. You will pay the loan over a substantial number of years. As a result, monthly payments are reduced.
With the way market conditions are changing, most contractors now offer customers a home improvement financing option. Therefore, ask your roofing contractor if they offer third-party home improvement financing options. Choosing to finance through your preferred contractor is an incredibly efficient option. It’ll ensure your necessary home improvement projects don’t get ignored. As a result, DeLaurier Roofing & Renovation trusts Renovate America as our chosen lender. What that means is:
- Renovate America provides competitive fixed rates with multiple term options. $0 down is a great custom fit financing option.
- RA offers simple, flexible, innovative financing solutions.
- Fast application process. The form is completed online with results in minutes.
- You do not need to have home equity in order to qualify for this loan. Rather, it is simply based on your credit score.
- Subject to credit approval, you may finance projects anywhere between $2,000 and $50,000.
- Loans are repaid through traditional monthly payments.
- They offer a special no-interest, no-payments financing option.
Of course, it can seem overwhelming. Especially when you’re trying to make decisions on home improvements and the best way to cover project costs. We get it! But it certainly doesn’ have to be stressful to finance your home improvement project. The key to making the best choice for your financing needs is doing your own research. Therefore, you should ensure you’re making a well-informed and responsible decision for you.
DeLaurier Roofing & Renovation is a preferred Renovate America home improvement company. Give us a call and we’ll make financing your next big home improvement project a breeze!