GRAND RAPIDS, Mich. (WOOD) 2015 is projected to be a big year for the housing and home improvement market. Many contractors are booking up now, which is why it’s a great idea to get your financing in order so you can move ahead with your projects. Option 1 Credit Union can help guide you through the steps to get started.
Where to Start
Step 1: Research your project
The more you know about what your specific home improvement project entails, the more you can evaluate appropriate products and proposed services. This tip holds true for something as “simple” as interior painting and re-carpeting all the way to planning an extensive remodel or expansion to your home.
Step 2: Estimate the total cost of your home improvement project
Estimating the cost of your project is critical in determining the required size of your home improvement loan and which financing option will work best. Make sure to get estimates from several contractors to ensure you are getting a reasonable price. Make an allowance of about 10% in determining your ideal loan amount, as unexpected costs may arise during the renovation.
Step 3: Meet with your lender and discuss the best option to finance your home improvement project.
There are a number of ways to finance your home improvement project and it’s in your best interest to discuss honestly with your lender what the best avenue is for you.
- A Mortgage, used as a cash-out refinance, can provide you with the needed money to renovate, remodel, and more, while keeping you in a low interest, one monthly payment option.
- A Home Equity Loan or a Home Equity Line of Credit (HELOC) can also provide you with the needed money. Both equity options are loans secured by a second mortgage, allowing you, the home owner, to borrow against the equity in your home. A Home Equity Loan is a closed end loan meaning you receive a lump sum at loan closing with fixed monthly payments and repayment terms. A Home Equity Line of Credit is an open-end loan meaning you have access to the available maximum loan balance throughout the length of the loan and you can use the money as needed.
In addition to both mortgage and equity options, Option 1 Credit Union offers our Home ReStyle loan. The Option 1 Home ReStyle loan can be used for small home repairs, new furniture, new appliances, remodeling, landscaping, and more. The Home ReStyle loan offers Option 1 homeowners low rates with terms up to 60 months, a minimum loan amount of $1,500 and gracious maximum loan amounts. A VISA card with low interest options may also work for some of those smaller improvements.
Option 1 Credit Union and Home Builders Association are sponsoring a myGRhome $10,000 giveaway. Enter to win online now through January 30.
Option 1 Credit Union Branch Locations
Greater Grand Rapids:
630 32nd Street SE
1240 Chicago Drive, Jenison
2355 Health Drive SW, Metro Health Village
4211 Plainfield Avenue NE
3286 Alpine Avenue NW
6025 N. Hagadorn Rd., East Lansing
6250 S. Cedar Street
2250 Lake Lansing Road