Your home is more than an investment, it's an asset. Over time, the value appreciates and the equity that builds can be leveraged for a home equity loan. If you've been considering building an addition, making repairs or even a major remodel, read the helpful tips below, courtesy of your friends at North Country Savings Bank, on how to get started.
A home equity loan can be fairly easy to obtain if you know what you need at the outset. First, make sure you have equity in your home. Equity is the difference between what you owe on the mortgage and the amount for which the house is appraised. From that amount, the lender extends credit and you can borrow what you need to make the planned improvements.
Second, when you go to talk to your lender, it is useful to have details about the improvements you're planning. Lenders want to see where the money is going and providing specifics can be advantageous in getting the loan approved for the amount you want.
Lastly, remember that with any loan, you will need to be aware of the fees associated with your loan and ensure you are not being charged too much. And keep in mind, this loan is in addition to the mortgage you are already paying for your home. As with your mortgage, should you default on a home equity loan, your house is at risk.
On the plus side, a home equity loan can be used to make almost any type of improvement which can boost your home's value, lower your insurance rates and improve your living conditions all at once
Stop by your neighborhood North Country Savings Bank to discuss your home improvement loan options with one of our experienced banking professionals.