How Northwest Bank Can Help You With Your Fall Fix-It Projects
on Tuesday, August 28, 2018
Maintenance and upkeep of a home can be expensive. Sometimes maintenance projects are expected; other times you might be caught completely off-guard. Either way, we have have a simple financing option that can help you with your fall fix-it projects.
A home equity line of credit is essentially a second mortgage that works like a credit card. Your spending limit is the equity in your home, and you are able to borrow against the equity to complete projects. For example, if you own a home valued at $250,000, and the remaining balance on your mortgage is $150,000, you can receive a home equity line of credit based on a percentage of the difference. If your lender is able to offer a line of credit based on 75 percent of the equity, you would have a line of credit of $75,000.
The sticker price on certain home maintenance projects can be intimidating, especially if you are living on a tight budget. Using a home equity line of credit allows you to make those needed repairs while reducing the stress over cost.
Consider a Home Equity Line of Credit for These Fall Fix-It Projects
Although the funds in a home equity line of credit are available to use on any expense, the funds on home repairs will help your home maintain its value and may even increase the value of your home. Following are a few examples of fall fix-it projects that would be perfect for a home equity line of credit.
- Exterior maintenance. While not exciting, every home will eventually need to make exterior repairs, such as replacing a roof or siding. The cost of such projects vary based on the size of your home but typically cost several thousand dollars.
- New windows. Like roofs and siding, windows do not last forever and can be costly. Home Advisor estimates that replacing a window can cost between $300 and $700 per window.
- Replacing a furnace or water heater. The average furnace lasts about 18 to 20 years. Water heaters have a life span of about 10 to 13 years. If your furnace and/or water heater are nearing their expiration dates, it may be time to replace them. Home Advisor estimates that the average cost of a new water heater – including installation – is more than $2,500. A water heater could run up to $3,000 if a homeowner opts for the tankless option.
Home renovations. It’s easy to dream of ways to improve your home, whether it’s finishing a basement, installing new flooring, or remodeling a kitchen or bathroom, such projects can be expensive. The national average for a kitchen remodel, for instance, is more than $22,000, according to Home Advisor.
All of the projects listed above do not require you to save the full amount ahead of time. With a home equity line of credit, you can complete that project now and pay for it over time.
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