There are many advantages of being a home owner! The equity in your home may allow you to:
- Using home equity loans for education is another popular choice, with the skyrocketing costs of post-secondary education and higher incomes that don’t qualify for special grants and government-backed loans.
- Home equity loans used to pay for education are an investment. An educated son or daughter is more likely to be financially independent sooner and building his or her own wealth rather than draining yours.
- Unfortunately, college for your kids comes just about that time when you are nearing retirement and may consider home equity loans to offset your reduced income. Don’t over look special educational loans, tax write-offs and scholarships to meet your children’s educational needs.
- With carefully planned and professionally completed work, homeowners put home equity loans back into their homes by adding more square footage, bringing the home up to current building codes, and upgrading to a contemporary home design.
- To make the loan the most effective at increasing property value, reliable contractors and well-planned renovations are a necessity.
- The best improvements from home equity loans increase the fair market value of your home. Remodeled rooms, particularly kitchens and bathrooms, add the most value. Additions are fine also, as long as you don’t over build. Additions should blend with both your home’s existing style and the design of the homes in your neighborhood. Interior painting, carpeting and the like probably won’t add much value, but those cosmetic touches will increase the appeal of your home.
- Eliminate higher-rate debt, like the debt accrued on credit cards. Home equity loans can pay them all off leaving you with one monthly bill that’s probably smaller than the others combined.
- There’s also a good chance the interest rate will be half what you were paying on just one credit card. The rate on home equity loans is cheaper because, unlike credit cards, the debt is secured by your home.
- Additional debt-cost savings are available because with the consolidation you’ll be able to pay off your debt sooner. Along the way you may be able to deduct the interest, up to the legal limits allowed for home equity loans.
|Home Equity Loan-Principal Residence||Annual Percentage Rate*|
|Fixed Term||80% Loan to Value|
**APR = Annual Percentage Rate. LTV=Loan to Value. ARM=Adjustable Rate Mortgage. WSJ=Wall Street Journal. The APR is current as of [3/2/2020]. Rates are subject to change without notice. Your rate on home equity loans may vary from the rates above and will be determined by your credit score, term and property value. Other fees may apply. Members Choice Financial Credit Union membership is required.