In York, summer offers more than longer days and warm weather. It also brings the perfect conditions for home improvement. From cooking up a new kitchen to adding energy-efficient windows to building out lush backyard living spaces, homeowners often use this season to invest in their property. But major upgrades come with major costs, and how you finance them can impact your monthly budget and the overall return on investment. May is National Home Improvement Month and a great time to focus on those home projects you may have been putting off.
If you don’t have enough cash on hand, it’s important to understand the funding options that might be the solution to making your home sweet home even sweeter. In this blog post, we’ll break down what funding options we provide, and walk you through how to choose and apply for the best option for your needs. And as always, we’re available to sit down with you and talk through the pros and cons of each. Book an appointment here >
A Home Equity Loan Can Turn Excellent into Extraordinary
Home equity loans allow homeowners to convert a portion of their home equity into a lump sum payout, which they can use for home improvement projects. Home equity is the value of your home minus the amount of debt owed on the home.
Home equity loans are secured, using the home as collateral. This means the lender has the legal right to foreclose on the home if the borrower fails to repay the loan. The use of collateral makes the loan less risky for the lender, which typically allows them to offer longer repayment terms and lower interest rates on secured loans like home equity loans.
Many of our members choose to tap into their home’s equity for their home improvement needs and at Heritage Valley with fixed rates starting as low as 5.99% APR* with no fees and with terms up to 15 years, it can be an attractive option.
A home equity loan is generally better for large, one-time expenses needing predictable, fixed payments.
A HELOC Loan Can Turn Groovy into Gorgeous
Like home equity loans, home equity lines of credit (HELOC) convert a portion of home equity into cash and are secured using the property as collateral.
Unlike home equity loans, HELOCs do not provide a lump sum payout. Instead, they serve as a revolving credit line, which homeowners can borrow against as needed (similar to the way a credit card works). HELOCs work in two phases: the draw period and the repayment period and interest rates are variable.
Many of our members choose to tap into their home’s equity for their home improvement needs and at Heritage Valley with fixed rates starting as low as 5.99% APR* with no fees and with terms up to 15 years, it can be an attractive option.
A HELOC is better for flexible, ongoing expenses (like renovations) because you only pay interest on what you borrow. Our attractive HELOC rates start as 6.75% APR* with a 10-year draw and 10 years to repay.
Learn more about our HELOC lending options and apply today >
A Personal Loan Can Turn Average into Amazing
Personal loans can be used for many purposes (including debt consolidation, funding your dream vacation, or medical expenses), but a common purpose is to fund home improvements.
Personal loans are unsecured, meaning they do not require the borrower to use any asset as collateral. Because there is no collateral, personal loans may have higher interest rates and shorter repayment periods.
At Heritage Valley, we make getting a personal loan to meet every day or unexpected needs unexpectedly easy with rates starting as low as 10.24% APR* with terms up to 60 months. Our competitive rates and quick turnaround mean you can take care of minor home improvement expenses with a credit union that takes a load off your mind.
Explore the Heritage Valley Personal Loan for your home improvement needs >
A Credit Card Can Turn Leafless into Lush
Need a new landscape? Credit cards may be used for smaller home improvement projects or updates that you intend to pay off relatively quickly. It is important to understand the limits and financial constraints of this option.
First, the credit limit may not cover the cost of the project. Even if it does, maxing out credit cards can temporarily lower your credit score. Secondly, credit cards often carry higher interest rates than other options. But for small, short-term projects, they can be a viable option and will leave your home’s equity in place.
At Heritage Valley, we offer a Visa® Platinum card with a fixed rate as low 10.90% APR*. There are no annual fees and you can earn rewards for every dollar spent.
Reach Out To Us To Discuss The Best Options For You
*APR=Annual Percentage Rate.
