Now that winter is (hopefully) coming to a close, we can start thinking about spring and summer! It’s an excellent time to make your house a home with the upgrades you’ve always wanted. Whether your upgrade is as simple as getting a new furnace, more complex like replacing your kitchen cabinets, or even a large-scale remodel, we have options to help you get the financing you need.
The First National Bank in Sioux Falls offers several options for financing your home improvement projects.
Home Equity Loan
If there’s a project you’ve always wanted to get done but don’t have all the cash on hand to do it, a home equity loan could be a good way to get your project done. A home equity loan is great for one-time financing needs; it allows you to use the equity in your home as collateral for a loan to use as you wish.
Home Equity Line of Credit (HELOC)
According to a September 2018 article from Forbes, now is an optimal time for financing home improvements by leveraging home equity, as homes have more equity now than at any other point in history. A Home Equity Line of Credit is a line of credit secured by the equity in your primary residence. This revolving line of credit makes money available when you need it.
The current market for refinancing is optimal. Refinancing now will likely get you a good interest rate, along with the ability to spread out payments over the life of the loan. If you want to lower your interest rate, reduce your mortgage term, consolidate debt, or take extra cash out of your home, it may make sense to refinance.
Regardless of which financing option you’re considering, we’d recommend you do some preliminary research and estimates to make sure your application process goes smoothly. Do the research: what is your project going to cost you? Get estimates: bring a contractor to your home to offer advice and estimates on time and cost.
As you’re considering these home improvement financing options, we’ll make sure your goals as a homeowner are met. We’ll find the best option while taking into consideration your current rate, the cost of your project(s), and your goals for repayment. We can handle any scope of project, from remodels to new construction.
By working with our mortgage team, you can have peace of mind and quality assurance, because we will help you make the best financial decision. Our lenders have knowledge of our local housing market and are experts in financing home improvements.
Most importantly, our lenders are involved with your project from start to finish, something you might not find at bigger banks. We’ve got your long-term goals in mind, and that’s a product of our commitment to building successful relationships.
If you’re interested in making upgrades to your home, meet with one of our Mortgage Bankers to discuss your options and see how much you can afford.