There's no denying it - home repairs are both expensive and necessary, especially given the chance of big storms happening in our Florida communities. Finding the right option for financing home improvement projects might be easier than you think.
If you find yourself in need of home repairs, check out these simple options to get the funds you need.
When interest rates are low, it may be worth it for you to refinance your mortgage for terms better than they were when you obtained the loan. However, this will only be beneficial for those who will get much better terms with a refinance -- you don't want to end up needing to refinance or take out a second loan in the future.
If you have a strong financial foundation, including good credit, a home equity line of credit, or HELOC, can be a flexible way to cover repair and renovation costs. With a HELOC, you typically have the option to make interest only payments during the draw period, which can help keep monthly payments lower when expenses are spread out. You also have the flexibility to pay more than the interest only amount and reduce the principal balance if you choose. This flexibility allows you to manage cash flow while still having access to funds as repair needs arise.
If you prefer more structure than a line of credit, a home equity loan may be a good option. A home equity loan allows you to borrow a set amount and repay it over a fixed period of time with predictable monthly payments. Because home equity loans typically have a fixed interest rate, they can be a good choice if you value payment stability and knowing exactly what you’ll owe each month. Many home equity loans have terms around 15 years, but as with a mortgage, it’s important to review rates and terms to ensure they align with your financial goals.
Credit cards typically carry higher interest rates than other renovation payment options, but they can still make sense in certain situations. If you are covering a single repair with a one time cost, using a credit card and paying down the balance as quickly as possible can help limit interest charges. In some cases, you may also earn rewards or cash back through your card’s benefits program. This approach allows you to cover smaller repair expenses without taking on an additional loan, as long as you manage the balance responsibly.
The Federal Housing Administration (FHA) loan program is designed to make financing available to a larger section of the population. FHA loans are insured by the government, require less money for the down payment and have lower credit score requirements, making them typically easier to qualify for and an excellent option for less-than-perfect credit. With an FHA loan, you can obtain financing for any needed home repairs -- from replacing appliances to repairing walls.
Necessary repairs to your home shouldn't be left undone because you can't pay for them. If you're ready to explore loan options, contact us today to learn more about our personal banking solutions.
Equal Housing Lender. Member FDIC. NMLS# 608046
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