Home improvement season is here, and many people are taking
advantage of a tried and true way to get more financial flexibility and to turn
current homes into dream homes.
Home equity lines of credit are making a comeback as home
owners tap into the rising value of their homes for the purpose of making much needed,
or always-wanted improvements.
Whether remodeling their kitchen or making an addition on
their house, Community Financial members are actively utilizing loans these
days according to Call Center Branch Manager, Jean Coulter.
“Lots of people are getting loans for home improvements, and
additions are popular, especially in the Plymouth area,” she said. “I had one
member who did an addition, he was actually copying the neighbors, somebody
across the street.”
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Many people are tapping into home equity loans in order to upgrade their homes. |
Community Financial offers two types of home equity loans: a
line of credit loan and a fixed-term loan. The line of credit loan is signed for
a 10-year-period during which the home owner borrows against it and makes
interest-only payments each month. At
the end of that period, the owner has a 20-year payback period. These loans are
currently the most popular, especially with Community Financial’s current loan
rates, which are as low as 2.50% APR.
The fixed-term loan allows borrowers to pay the loan back
within 20 years in set payments.
Coulter noted that people are using the loans for other
expenses as well. Some people are using them for landscaping projects and
pools, while others have an eye on their children’s futures.
“A lot of people are using them for college expenses for
their kids, they’ll open them up and then use them to pay for that,” Coulter
said.
Home equity loans can also be useful for paying outstanding
credit card balances and consolidating debt, she noted, because of the current
low interest rates.
While a home equity loan affords homeowners the opportunity and
flexibility to make important upgrades and meet other needs, Coulter stressed
that it’s important for people to realize that they won’t necessarily get equal
value back when it’s time to sell, so invest wisely.
For more information on home equity lines of credit from Community Financial, including a rate disclosure, visit this link.
For more information on home equity lines of credit from Community Financial, including a rate disclosure, visit this link.
Home improvement season is here, and many people are taking advantage of a tried and true way to get more financial flexibility and to turn current homes into dream homes. home loans
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