You may have already noticed some of the signs hinting that Fall is on its way. The sunsets are earlier, nights are getting cooler and pumpkin spice and apple flavors are starting to make their appearances. Though many may be sad to see the summer coming to an end, we can optimistically look forward to the season’s change.
Fall presents an opportunity to reassess your financial goals and plan for the rest of the year. For homeowners, that may mean prepping your home for the colder winter months, tackling any much-needed home repairs or even focusing on a home renovation ahead of the holidays.
Some popular Fall home projects include:
- Caring for your gutters
- Repairing or updating your roof
- Winterizing your exterior plumbing – faucets and sprinklers
- Updating your furnace and cleaning or replacing filters
- Prepping your fireplace for use
- Sealing gaps and adding insulation
- Installing new windows
- Painting your home’s exterior
- Updating major appliances or electronics
- Remodeling the kitchen, bathroom or guest room
These projects range from easy fixes to much more involved and costly renovations. Luckily for homeowners, there are various borrowing options for you to consider when making your home improvement plans.
Popular Home Improvement Financing Options
Understanding the many options available in the industry is important in helping borrowers make an informed decision. Depending on the scope of your project and the funds needed to complete it, a credit card or personal loan may be a suitable choice. However, these loan types often have higher interest rates and may not be appropriate for larger projects that you plan to pay back over a longer period of time.
Home Equity Lines of Credit
A popular option for home improvement financing is a home equity line of credit (HELOC). HELOCs conveniently allow you to take advantage of the equity you’ve built in your home. By using your home as collateral, you’ll be able to access a revolving line to credit that can be used again and again up to your available limit. HELOCs have a variable rate and offer an interest-only payment option for lower monthly payments. However, you can always make voluntary principal payments during the HELOC’s draw period; keeping in mind that at maturity, the remaining account balance will be due.
You can use your HELOC for home improvements or even to consolidate debt, pay medical bills, assist with college tuition and more. This an ideal option for tackling projects as you go or simply to use as a backup for unexpected emergencies and repairs. Plus you’ll only pay interest on the funds you use. There may also be potential tax advantages. You should consult your tax advisor regarding the tax-deductibility of interest when considering your funding options.
To discuss your goals and the borrowing solutions available with Civista Bank, contact a Civista banker. You can find your nearest branch’s location and contact information here. For more information about Civista HELOCs visit civista.bank/personal/borrow/home-equity-line.
*Important information.
Home Equity Line of Credit (HELOC) lowest rate is Prime (8.50% Annual Percentage Rate (APR) as of 7/27/23). The lowest rate includes no closing costs for equity lines under $500,000.00 that remain open for at least 36 months. If you close your line of credit within 36 months of account opening, the bank origination fee waived at account opening ($350.00 as of 7/27/23) may be assessed. Annual fee is $75.00 and is waived the first year. The APR may vary based on The Wall Street Journal “Prime Rate” (Prime) as published on the first day of the month. Minimum APR is 3.75% and maximum APR is 25.00% OH and 18% IN. Rate and terms may change at any time and may vary by property type, loan amount, credit history, and loan-to-value ratio. Property insurance required and flood insurance may be required. Consult your tax advisor regarding the tax deductibility of interest. Important Consideration when managing Interest-Only Payments: the interest rate on a home equity line of credit is variable; therefore, your monthly interest-only payment may change with market rates. Your principal balance is only reduced when you make voluntary principal payments during the 15-year draw period of your home equity line of credit. At maturity, any remaining account balance outstanding will be due in a single balloon payment. At that time, the bank may, but is not obligated to, refinance the line of credit. Subject to credit and property approval.
Loan details are as of July 2023 and may be subject to change.
