So, you have dreams of a new kitchen or bathroom remodel. It may be a new master suite addition to your home with a new A/V system. Or maybe you just need a new furnace. What are some of your options to fund these projects other than the good old cash you might have saved up?
One good option to consider if you live in Ohio and plan to incorporate some energy-saving improvements in the scope of the project is the ECO-Link program. ECO-Link is a partnership between the state treasurer of Ohio and participating state banks that provides a three percent interest rate reduction for five or seven years on bank loans when completing energy-efficient upgrades in your home. Through this program, ECO-Link invests in Ohio’s environment and communities while fostering economic growth. The maximum loan amount the interest rate reduction can be applied to is $50,000. At least 50 percent of the loan must be used for energy efficient products. A homeowner can opt for a seven-year rate reduction if the loan is for more than $25,000.
The other option is a home equity loan or a line of credit. These types of financing can be obtained from your local bank or credit union. A home equity loan will be subject to an appraisal for the current market value of your home and how much equity you currently have in the property. It’s also worth looking to see if you can refinance your existing mortgage to get a better rate and free up some cash.
A line of credit is usually not as large as a home equity loan, but also is a much simpler process to work through. Obtaining financing these days can be much more challenging than in the past, so allow sufficient time in your project schedule. Credit unions now have the capability to provide financing for these types of projects with the added benefit of typically in-house local decision making on approvals and less bureaucratic government guidelines than those imposed on banks. HomeServicesLink is a member of Emery Federal Credit Union, providing access to all of its products and services with that small-town bank feeling.
Any way you choose to fund your dream project or necessary replacement, make sure you are getting good value for your money. Use quality materials and quality contractors, and try not to over-invest in your home, especially if you plan to sell in the near future. Material prices continue to rise at historical levels, but labor prices have come down. Advances in technology have also made items like home automation and audio/video systems in reach for many more home owners. If you are planning a project, remember we’re here to help. Just give me a call at 513-271-1888 or email at email@example.com.