If you put down a decent down payment or have been paying on your home for a few years, the chances are good that you have a good amount of equity that you can use to your advantage. Financing home improvement projects through a home equity loan can be a very cost-effective way to upgrade a kitchen, bathroom, or to install other features. Finishing a basement, adding a bathroom, putting in a brand new deck, or putting on a new roof, these are just some of the things that people do with a home equity line of credit in New Bedford and the surrounding area. A credit union home loan can help you afford the work you require without the higher interest rates in New Bedford for credit cards or other financing options.
What is a Home Equity Loan?
When you join St Anne Credit Union, you gain access to a number of different loan options as a member. There are specific criteria that must be met to qualify for the various types of loans. For example, with a home equity loan or home equity line of credit, you will need to have positive equity in your home. Equity is the difference between the amount of money that you currently owe on your first mortgage and the market value of your home. Let’s say that you owe $220,000 on your current mortgage, but your home is appraised at $355,000. That means you have a positive equity amount of $135,000. The lending institution, such as your local credit union in New Bedford, will determine how much of a loan can be provided based on your equity, as well as a number of other factors.
Some of the factors that must be considered are similar to any other type of loans, such as a first mortgage credit union home loan, car loan, business loan, and a personal loan. Credit verification, income verification, and current mortgage payment history will be used to determine creditworthiness. Speak with a representative at St Anne Credit Union to find out if you qualify for a home equity line of credit. If you already have your current credit union home loan with our credit union, the process might be even easier. Contact or visit our office to ask questions and learn more about interest rates in New Bedford for this type of financing opportunity.
Home equity loans are very similar to regular mortgages. However, there are a few differences. A typical home equity line of credit will offer a fixed interest rate for the duration of the loan with interest accruing when the loan funds. A fixed payback period can be selected, and the loan is secured by your home. The amount of credit extended will depend upon the equity available in your home, along with the other determining factors. For specific details on St Anne Credit Union home equity line of credit and other credit union home loan opportunities, contact one of our agents. We would be happy to answer any questions that you might have about our loan options for members.
Why Use an Equity Loan?
There are lots of ways to finance home improvement work. Credit cards, direct financing from service providers, and other loan options are all available to homeowners with good credit. However, a home equity line of credit is secured by the value of your home, which means you can often get an interest rate that is much lower than other types of interest rates in New Bedford. There are also tax benefits available if you itemize your deductions. You may be able to deduct the interest that you pay on a home equity loan. For best results, consult with your tax professional to determine how much interest would be deductible for your current situation.
Deciding to make home improvements can increase the value of your home. Real estate experts have determined that many home improvements can increase the value of the home between 50 and 100 percent of the cost of the improvement. When chosen wisely, a quality kitchen upgrade can improve your home value by thousands. Make sure to work with a licensed, insured, and reputable service provider who can give you the return on your investment that you are seeking. You can also work with a local real estate agent for advice on which projects would provide you with the best return, depending on the current market, your local neighborhood, and the need for improvements to your particular home.
Join St Anne Credit Union in New Bedford
Discover all of the options and benefits associated with becoming a member of the oldest credit union in Southeastern Massachusetts. We are proud to have served customers within Bristol and Plymouth counties since 1911. Give us a call at 508-993-0011 to speak with a representative. Learn about getting a credit union home loan, home equity line of credit, or about current interest rates in New Bedford. Learn all the ways we can help you to manage and grow your finances at St Anne Credit Union.