Using a Home Equity Line of Credit for Home Improvement

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Taking advantage of a Home Equity Line of Credit (HELOC) for home improvements can add value to your home without busting your budget. Whether you’re looking to make improvements to prepare your home to sell or finally getting around to those projects you have put off, a HELOC offers many flexible options to get the job done.

Why Should I Consider a HELOC for my Home Improvement Project?

When it comes to home improvements, sticking to a budget is a primary concern. When it comes to a Home Equity Line of Credit, their low interest rates and flexible repayment options make them far more budget-friendly than other financing options.

With rates at record lows, your borrowing power is increased by how much you’ll save on interest. Along the same reasoning, HELOCs are a great alternative to using credit cards or a personal loan, as these options often carry much higher rates and more restrictive borrowing limits, as they lack the security of your home’s value as collateral.

One Flexible Loan, All Types of Improvements

Thinking about building a new deck or expanding an existing one? Are your fixtures and appliances in serious need of an upgrade? Perhaps remodeling your basement would dramatically increase your usable living space? Using a HELOC for high-value updates and improvements not only gives you the power to get more done on a budget, it could also increase the value of your home in the process.

Not sure the cost of your improvements or unsure of how much work needs to be done to your home? You can still borrow as much as you may need as you shop around for improvement quotes and only use and pay back the funds you need.

Other Things To Consider

There are several great reasons to choose a Home Equity Line of Credit to finance your home improvement projects; however, there are a few things to keep in mind as you prepare your application.

Consider your time frame

As Stephen Covey once said, it’s important to start with the end in mind. We highly recommend going into any renovations with a well-thought-out plan on which improvements you will tackle first, how long they’ll take, and whether or not to begin additional projects before the previous one is complete. A HELOC can give you the flexibility to borrow enough for all of your projects, but your monthly payment will be determined by when and how much you draw. With a solid plan and a little patience, you can maximize one of your HELOC’s greatest features: the ability to repay and reuse your loan amount over the course your draw period. If you need help with your game plan and timeline, our loan consultants will be happy to guide you towards a solution that best suits you and your situation.

Review relevant rates and associated costs

As you prepare your application, be sure to gain a firm understanding of any variable rates and closing costs that your loan may carry. “Variable rate” may seem like a scary term to borrowers, as it indicates that you payments could go up. However, smart borrowers recognize that rates can also go down, creating additional value and opportunity to maximize their HELOC as a financing option. It’s also worth noting that while a variable rate may change, it isn’t guaranteed to. And with today’s historically low rates, even a slight increase would still leave most borrowers at rates they would’ve never dreamed of years ago.


We hope these pointers give you a little food for thought if you’re in the market for a Home Equity Line of Credit or even in the beginning stages of considering big improvements for your home. HELOCs present a great opportunity to add flexibility to your budget and even save you time and money.

Have questions about how a HELOC can put the value of your home to work for you as you start working on your home? Ready to get started? Give us a call at 804-274-1200 or stop by your favorite branch location. Our team is full of dedicated lending specialists willing to help you from planning stages through the loan application and beyond. We’ve even been known to give an opinion on paint colors.

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