Home Improvement Financing

You love your home, but it’s not quite perfect. Maybe you’re thinking about new siding, upgrading the second bathroom, or adding a screened-in porch. Improvements like that will help you get more enjoyment out of the house and may even increase its value. The big question: how will you pay for it?

If you don’t have the cash on hand, there are many options. You can finance the work through a credit card, or the contractor may have some sort of financing program. The problem with those two choices is that the interest rates are usually very high.

There’s a better alternative for many homeowners. It’s called home equity credit. Equity is the portion of your home that you own, computed by subtracting your mortgage balance from the home’s market value. For example, if your home is worth $200,000, and your mortgage balance is $130,000, we say that you have $70,000 in equity.

Lenders like Indiana Members Credit Union offer programs that let you borrow against that equity. We do it through what’s called a Home Equity Line of Credit. It lets you borrow up to the credit limit that you qualify for.

When you use home equity credit, you’re essentially borrowing from yourself, because your line is backed by the equity you have. That’s one reason it’s a great choice for projects that will increase your home’s value. Another reason is that you may be able to deduct the interest you pay from your taxes (check with your tax preparer about your situation).

Indiana Members Credit Union’s home equity line of credit has no application or annual fees, no closing costs, and no prepayment penalties. Depending upon the amount of equity you have and the value of your home, you can borrow as little as $5,000 or as much as $100,000.  Affordable and flexible payment plans, including an interest only option, are available. Is a Home Equity Line of Credit right for you?  Ask to speak with one of our loan officers at your nearest branch.

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