Home Improvement Loan Tips

National Home Improvement Month

May 2017 is a special time for the DIYers, the buyers, and the sellers.
According to Daren Blomquist, senior vice president with ATTOM Data Solutions, the first quarter of 2017 has been the most profitable time for home sellers in nearly a decade! (That is, if your home is ready to sell.)

Small home improvements overtime can increase the value of your living space substantially. According to the Door + Access Systems Newsmagazine, garage door replacement and entry door replacement came in first and second place for highest return on investment. 

Where ya gonna get that money though? A home improvement loan, duh!
But what’s the difference between home improvement, HELOC, and a home equity loan?
Home equity is built up as you pay off your home, being the difference in the home’s market value and the outstanding balance you still owe. As you pay your home off, your equity grows.

A home equity loan is literally a second mortgage. Your first mortgage was used to pay for the home, but you can use additional loans to borrow against your property if you have built up enough equity. The more equity you have stored up, the larger home equity loan you can get. Normally, if your home is worth more than you owe, getting approved for a home equity loan is easy (and secured by your home), but if not, then maybe it is best to go another route.

How much equity you have is factored in when determining your HELOC (home equity line of credit). If you haven’t paid a single dime of your home mortgage yet, you would have no equity and, therefore, no line of credit (HELOC). Make sense?

Home improvement loans are much different, they are given for specific projects and your home’s equity is not taken into consideration. For example, if you wanted to remodel the bathroom, your local credit union could then look over your plan or quote to determine how much you are applicable to borrow.
For more detailed information on home equity loans and HELOC, visit our blog.

Home Improvement Loans For the Do-It-Yourselfers

Home improvement loans are great for small, less-expensive, or DIY upgrades, such as a new front door, garage doors, new bathroom tiles, or just some fresh paint. Missouri Central Credit Union offers home improvement loans for as low at 6.25% APR, up to $7,500. Do you even know how much you can do with $7,500? Well, let’s take a look at some approximations from the Home Advisor True Cost Guide to find out.

Paint:
Room: $355 - $957
Exterior: $1,698 - $3,760
Interior: $934 - $2,556
Repairs:
Cabinet repair: $135 - $489
Garage repair: $148 - $326
Roof repair: $316 - $1,113
Windows: $138 - $481
New Stuff:
Toilet: $223 - $538
Sink: $220 - $582
Shower Doors: $556 - $1,288
Ceiling fan: $143 - $351
Entry Door: $508 - $1,406
Bigger New Stuff:
Wood Floors: $2,582 - $6,475
Windows: $2,597 - $7,413
Deck: $4,074 - $9,948

So basically, a bathroom upgrade, according to the list above, would only about $1,400! Assuming you don’t want to buy the cheapest toilet and may want to spruce it up a little more, you could apply for a home improvement loan from Missouri Central Credit Union for $2,000 that would work wonders and more on your outdated bathroom.

Property value increase? Check!
Peace of mind? Check!
Hideous bathroom? Gone!
Dinner party at your place? RSVP’d!

Visit Missouri Central Credit Union now to learn more about rates and apply for your Home Improvement Loan!