Thinking about making improvements on your Southeastern Massachusetts home? If you are a member of St Anne Credit Union in New Bedford, there are lots of great options available to you that can help you achieve your goals. Whether you decide to put money away and save to pay for your improvements in cash or if you want to use the equity in your home through options like credit union loans or a home equity line of credit, we are here to help.
Learning about the differences between home improvement loans and home equity lines of credit can really assist you in making a smart decision. Learning how to maximize your savings through the use of money market accounts and certificates of deposit in addition to your New Bedford Share Savings can also help you to grow your money in a safe environment. This article features some insight into all of these options, but be sure to visit your local credit union loans specialist at St Anne Credit Union for even more details.
Home Improvement Loans
In the case of basic credit union loans, including home improvement loans, many lenders require a complete description regarding the type of work that the loan will be used to fund. It is important to have a professional estimate that includes as much detail as possible from a preferred provider. The application that you provide should also outline all of the steps that will be taken during the construction process and the corresponding costs. Each lender will have different requirements and processes for home improvement loans, ranging from small projects to larger additions and renovations. Some are paid in full at the time of the loan, while others are paid in disbursements as the work is completed.
Home Equity Line of Credit
Perhaps the most popular type of credit union loans used for home improvement are the home equity line of credit opportunities. The loan that is requested must be based upon the fair market value (FMV) of the home, minus the balance due for the first mortgage. The amount of money available through a home equity line of credit will vary, depending on the market and the lender, however it is typically 80 percent of the FMV after the first mortgage has been subtracted. No bids or paperwork needs to be submitted in order to obtain this type of loan, however it is important to note any improvements that increase the FMV of the home, which can increase the amount of money that can be borrowed to complete the work.
Money Market Account
Beyond your primary New Bedford Share Savings account, which is required to become a member of St Anne Credit Union in New Bedford, a money market account is a great way to grow your money with a higher interest rate earning. A minimum $2,500 is required to open and maintain a money market account. This variable rate account pays interest based upon the balance of the account. Speak with a credit union representative for details.
Certificate of Deposit
Similar to a money market account, a minimum balance must be maintained in a certificate of deposit account. However, set terms of investment are required in order to prevent penalties and maintain your earned interest. At St Anne Credit Union in New Bedford, that minimum balance is $1,000. Interest can be received by check on a monthly basis or it can be left in the account and compounded monthly. Choose terms between six months and five years based on your financial needs.
The Money You Need – When You Need It
The best type of home improvements are the ones that are well-planned and budgeted properly. Remember to include extra funds for unexpected issues or changes to your project so you won’t get into a bind. Planning ahead by putting money away in your New Bedford Share Savings, investing in a money market account or certificate of deposit, can help you to complete your project debt-free. However, investing in the value of your home through a home equity line of credit or other credit union loans, can also pay off big time by increasing your fair market value. So whether you are planning on making upgrades now or in the future, it pays to work with your St Anne Credit Union representative to find the solutions that are best for you.