Home Improvement Financing Options

It’s no secret that home prices are sky high right now. A combination of factors has driven real estate averages up, complicating home buying so much potential buyers are having to stay in their current home longer than anticipated.

Home improvement projects can make your space more workable for your family. What are the best ways to finance those home improvement projects? The loan experts at CCF weigh in.

#1 Refinance 

Refinancing your mortgage can potentially lower your interest rate and monthly payment, freeing up funds for home improvements without a new loan.
    1. Create a separate savings account and deposit the monthly difference between your original mortgage payment amount and your new mortgage payment amount into this dedicated account so the savings aren’t just absorbed into your budget.
    2. This option is best for small upgrades or DIY projects that can be accomplished bit-by-bit without a big influx of funds.
    3. Use our refinance calculator to determine how much interest refinancing can save you.
Special offer: $1,000 Mortgage Closing Cost Credit
Whether you're refinancing or buying new, you may be eligible to receive a $1,000* closing cost credit on any conventional loan with a term of 15 to 30 years. But don't delay any longer! This offer is valid through 4/30/2022.

*Rates are based on credit score, term of loan and collateral. Subject to change at any time. Discount will be applied at the time of closing on the appropriate closing documents. FHA, VA and other mortgage programs not eligible. Existing CCF MFM Mortgages not eligible for promotion. All loans subject to credit approval.

#2 Take Out a Home Equity Loan 

A home equity loan can help you stay in your home for a while longer by adding an extra bathroom, finishing the basement, or creating an outdoor space for summer fun - whatever you need to make your home workable for your situation.
    1. Most home equity loans have a fixed rate, meaning the rate is locked in for the life of the loan. Designed to be drawn upon one time for bigger projects, these loans generally offer lower and more attractive rates.
    2. These improvements make your home more valuable to potential buyers when you are eventually able to move.
    3. This option is best for big projects like a new bathroom or kitchen, building a deck or other large project requiring contractors and big supply purchases.

#3 Consider a HELOC

Whatever you decide to do, experts don’t advise putting home improvements on a standard high-rate credit card. Instead, consider a HELOC (Home Equity Line of Credit).
    1. With this variable-rate revolving line of credit, you can draw funds for a specified period.
    2. You can then use funds for any purpose and reuse as needed, without reapplying, over a ten-year repayment period.
    3. Home equity lines of credit tend to have slightly higher, variable rates, but allow you to draw funds up to your maximum credit line as needed.
    4. This option is best for ongoing projects where you need access to cash at different times, or for a “fixer upper” where there are multiple projects in progress.
    5. Use this calculator to determine the home equity line of credit amount you may qualify to receive. The line of credit is based on a percentage of the value of your home. The more your home is worth, the larger the line of credit.