House to Home: TURN TO-DO INTO TA-DA

Use your home’s equity to pay for the projects you’ve been meaning to do.

Home values here in Utah have been on the rise for the past few years and continue to trend upward. Pair that with the historically low interest rates we are experiencing, and that equals great news for homeowners who are looking to use the equity in their homes to pay for remodeling, which can be done with a few different options detailed below:

Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new home loan for more than you owe on your house. The difference goes to you in cash, and you can spend it on home improvements. There are limits of the cash-out amounts to 80%-90% of your home’s equity.

Home Equity Loan

A home equity loan is essentially a second mortgage with a fixed rate and repayment period of 5, 10, or 15 years, along with a set schedule of payments that include both principal and interest. All money is disbursed upfront, and the interest you pay may be tax deductible if the money is used to remodel, repair, or otherwise improve the home.

Home Equity Line of Credit (HELOC)

The majority of HELOCs have a draw period and a repayment period, but the HELOCs at Ascent CU provide an evergreen line of credit. The draw period is the amount of time you have to use the line of credit you were approved for. Once that period expires, you can no longer withdraw funds, and you must start repaying the full loan. Interest rates are usually lower than unsecured credit, and the interest you pay may be tax deductible if the money is used to remodel, repair, or otherwise improve the home.

We have mortgage experts ready to help you find the best option for your remodeling plans, and we strive to make the process as easy and painless as possible by providing fast, local loan decisions and one-on-one service throughout the entire process – you won’t be passed from person to person. Give us a call today or stop by our branch in North Ogden, Ogden, or Roy to speak with one of our mortgage experts.

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