Sponsored Content
By John Platt, Bryant Bank Vice President
My first home was an older house not built with modern-day insulation standards. As winter approached, I used a home equity line of credit (HELOC) to insulate the walls and to purchase and install windows that were better insulated as well. The result was a much-reduced heating bill throughout the winter.
The option of taking out a line of credit that is secured by the equity in your home is a great choice for home improvements and repairs all year long. The example above is just one of many ways the funds can be used.
Why Use a HELOC for Your Spring Renovations?
Home renovations continue to be a top priority for many homeowners, many of which are done during the Spring season. From a total fixer-upper to replacing a roof, or adding a storage shed to store that new lawn mower, it seems like there’s always a home project that needs attention. Oftentimes, these types of renovations can help increase the market value of your home as well, which is another big benefit.
Some solutions may be more inexpensive or fall into the DIY category, such as weather stripping and caulking. However, other tasks such as replacing windows or buying a new furnace are probably beyond the skill set of most homeowners, and often beyond savings account balances as well.
This is when a HELOC may be the best answer.
It’s important to note that there are significant differences between home equity loans and HELOCs. With most home equity loans, your funds are delivered in one lump sum, and you have a fixed interest rate and repayment plan for a specific period of time.
With a HELOC, you have a revolving line of credit, similar to a credit card. You pull from it as needed, up to a specified amount. HELOCs also come with variable interest rates. You pay only on what you draw, but the rate may increase or decrease. Many HELOCs come with specified draw periods that are followed by repayment periods.
How to Decide If a HELOC is Right for Your Home?
If you think there might be work to do when it comes to your home, start by asking some questions and making a list. Are there areas of your home you know are drafty? Have you been thinking windows or insulation needs to be replaced? Don’t put these concerns off any longer, but look into what local resources may be available to help you make these decisions.
Many utility companies offer free energy audits and DIY improvement tips, which could be a great place to start. There may be some small tasks you can tackle yourself, but when you have large, labor-intensive, expensive projects that need to be done, you are probably going to need some help.
Photo by Nathan Prewett.
If you are interested in obtaining a HELOC for repairs and renovation, contact one of our bankers at Bryant Bank. You won’t do this by dialing a 1-800 number that goes to a call center. You will make a local call and talk to local people. We are proud to do business in the communities we serve, and our Bryant Bankers will be able to assist you with the HELOC process from start to finish and will proudly deliver banking beyond expectations. For more information, visit BryantBank.com/personal-lending or call our Trussville office at 205-661-5900. Member FDIC. NMLS #582857
