As summer rolls into fall and the air begins to get crisp and cool, homeowners start to think about repairs, remodeling, and renovation to help get their home ready for the holidays. Reflect on last year’s holiday experience and think about what you would like to change. Would you like to make your kitchen more party-friendly or upgrade your guest bathroom to better accommodate your guests? Do you want to create a special guest room for people to stay in when they come to visit? Whatever your goals they can usually be achieved with careful planning and smart remodeling projects. There are three ways that homeowners typically pay for this type of work: cash, personal credit union loans, or a home equity line of credit. If you don’t have cash set aside in a New Bedford credit savings account or prefer not to use credit cards for this type of work, it’s time to consider your options.
Personal Credit Union Loans
While we typically hear about using a home equity line of credit or another type of mortgage loan to pay for home renovations, more homeowners are turning to personal loans to pay for remodeling materials and services. Home equity loans or HELOCs are not practical in some situations, so it is essential to consider other opportunities. Depending on the amount of work that you need to have done, personal credit union loans can be very beneficial. Applying for a personal loan is usually a lot easier, as it is merely based on your credit history and earning ability instead of the value of your home. Depending on the lender, a home equity line of credit application can be just as complicated and stressful as getting your original mortgage loan.
With a HELOC loan, you are limited to only borrowing against the equity that you already have, which is the difference between the value of your home and your first mortgage. To find the current value, it is very likely that you will need to arrange and pay for an appraisal to determine an accurate figure. A personal loan does not require any of this and can help you get started on your remodeling project right away without delay. The end of summer and the beginning of fall is the busiest time for home renovations, so it pays to have a jump on your neighbors with regard to hiring contractors to get the job done. There are many benefits to choosing a personal loan from St Anne Credit Union in New Bedford. Personal loans are great for recent homebuyers, those without significant equity in their home, smaller home improvement projects, and borrowers who have excellent credit.
Home Equity Line of Credit
However, it may be possible that personal credit union loans are not the best match for your situation. If you are a homeowner who has a significant amount of equity available in your home and you want to do a major renovation, a home equity line of credit might be the best bet. You could even save money with a lower interest rate for a HELOC, depending on the lender and the current market. As a member of your local credit union, you might even be eligible for New Bedford credit savings on interest, fees, and other applicable rates. There are other advantages as well that you should discuss with a representative when you call or visit St Anne Credit Union in New Bedford to talk about your options.
The interest payments made on a home equity line of credit can also be tax deductible under certain circumstances. This is not true with any type of personal loan. This is why many homeowners in Southeastern Massachusetts choose to use a HELOC loan instead of a personal loan or other types of credit union loans for home improvement. As a member of a local credit union in New Bedford, it pays to speak with a representative to find out what type of loan will work best for your unique situation. Unlike traditional banking institutions, our goal is to find the solutions that will provide our members with the most significant advantage and all-around savings opportunity.
Work With a Qualified Contractor
While there are many television programs and online resources that tout the benefits of DIY or do-it-yourself home improvements, if you are not experienced with renovation and remodeling, you should not attempt this work on your own. It pays to hire a licensed, insured, and reputable contractor in your local area who can provide the type of results that you desire. Taking the time to properly research and vet a contractor can save you lots of money and stress with regard to your home renovation project. Whether you are simply upgrading a guest bathroom or creating a completely brand new kitchen, you will want to make sure that the contractor you hire is qualified and able to complete the job.
Looking to take advantage of New Bedford credit savings as a member of our credit union?? Find out if you qualify for personal credit union loans or a home equity line of credit at St Anne Credit Union in New Bedford. Give us a call at 508-993-0011 or stop by our local branch on Union Street in New Bedford, Massachusetts.