Three Smart Ways To Use Your Home’s Equity

When talking about home equity, many people become stumped. But, it’s actually quite simple. It’s the difference between your home’s value on the market, and what you still owe on it. If you're a homeowner, you may be able to use this equity as collateral to borrow money! There are two ways you can do this:  1. Home equity loans immediately advance you a single sum of money and usually require payments over a fixed period at a fixed interest rate OR 2. Home equity lines of credit give you the option of borrowing money as you need it, up to the amount your lender approves for you. Rates vary, so your payments may vary. If you have equity, here are a few smart ways to use a home equity loan!

 

1)      Debt Consolidation – This is a good option if you have several balances on several credit cards or other loans. By consolidating multiple balances into a single home equity loan, you can simplify your life and find that you may have a dramatic reduction in your borrowing costs. But be careful- debt consolidation only works if you have self-discipline. If you run your cards again and rack up those balances yet again, you’ll be in worse shape.

2)      Home Improvement– If you’re thinking about getting new counter tops or renovating your bathroom, a home equity loan is perfect. However, consider the long-term economic value of the project and how long you expect to stay in your current home and enjoy the results!

3)      Covering A Big Expense- Getting married?  Sending your child to college?  Whatever your big expense coming up might be, a home equity might be the solution to paying for it.  You can use some home equity loans for literally anything, so think bigger picture than just home improvements!

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Tips To Save On Your Summer Deck Project

Do you have a summer project planned out?  Many of you probably do, and for some it may be that brand new deck to complete your backyard.  After all, it was a long winter, so you need somewhere to kick your feet up and relax outside!  Well, building that deck doesn't have to break the budget.  Here are three tips to get you started:

1. Make a plan!  There are some great free resources to help you plan for the perfect deck for your backyard, even down to the material list.  The “Deck Designer” tool on Lowe's website is a great and easy to use example of this, and there are many, many more available online.
2. Shop smarter! Once you know your materials, shop smarter!  Pay attention to sales and coupons.  If you have an idea of where you think you will purchase your supplies, sign up for that store’s email list so you’re the first to hear about coupons and sales! Compare stores and prices to get the best deal.  Lumber stores often offer a buy in bulk discount on material, so going prepared and getting everything you need the first time can literally pay off.
3. Measure twice, cut once!  This may sound like a no-brainer, but there is nothing worse than spending money on material only to ruin it and have to replace it.  Take your time when laying out your plan, and if you need help ask!  If you’re not particularly handy with a saw, it may be better to pay someone to help you or do the install than to attempt it and have to spend more money in replacement material. 

If you’ve done the planning and are ready to add your own deck but are wondering how to pay for it, consider an Honor Home Equity option!  A home equity loan might be the solution to your new backyard oasis!

What other summer projects are on your list this summer?  Follow Honor Credit Union on twitter @honorcu and let us know using #askhonorcu!

Home Improvement Projects That Will Pay Off

As the weather heats up, many homeowners get the itch to tackle that project that they just couldn't do in below freezing temps.  But how do you know which projects are a worthwhile investment?  Here are three areas that done wisely will improve the value of your home and pay themselves off.

• Kitchen/Bath – Perhaps the first two areas that potential buyers look at in a house, making some tweaks to these high use rooms can make a big difference.  Even if the difference is as small as refinishing the cabinets or a new floor, the overall impression of the room will go up instantly.  While these can be larger projects to tackle, the moderate kitchen remodel (under 15,000) has more than 100% return value according to HGTV!
• Curb Appeal – New siding or a new roof may not be in the forecast for everyone, but if you are thinking of selling, improving the curb appeal of your home can make a big difference.  Being able to list new siding or a new roof on your house’s listing will go a long way in the eyes of buyers.  Even just planting a few flowers and a new layer of mulch can make a huge difference in your house’s curb appeal.
• The Small Things – While in comparison to a new roof, a programmable thermostat may seem small, the value it holds can really pay off.  The extra bells and whistles that features like programmable thermostats, extra insulation, or energy efficient features can make will help in both overall value and keeping your energy costs down.

If any of these projects strike a cord with you, but you are wondering how you would finance a larger project, don’t forget about an Honor Home Equity Loan to get your project up and running!

What other projects are you tackling this summer? Follow Honor Credit Union on twitter @honorcu and let us know using #askhonorcu!