It’s no secret that housing additions and remodels can increase your home’s market value. You can sell a house for a higher asking price when it has been given cosmetic upgrades, but how do you justify putting more money into a space you’re planning to leave? Many people forgo improvements because they’re expensive, but we know a great trick for improving your home’s value without shouldering those costs. Let the value of your house help you cover those costs with a HELOC from United Financial Credit Union!

What is a HELOC?

The full term is “home equity line of credit,” which means borrowing against your home equity, which is the value of your house minus what you still owe on your mortgage.

For example, if your market value was $200,000 and you still owe $60,000, you would have $140,000 worth of home equity. Your equity increases as you pay off your mortgage, or when your house’s market value rises.

When you have home equity it can be used as collateral for a line of credit, which can then be used to finance improvements and remodels. As these additions increase the home’s value, they will essentially recoup their costs. Your house is paying for its own upgrades!

Don’t Use Credit Cards for Home Improvements, Use a HELOC

It may be tempting to use a credit card to finance improvements, especially since getting a credit card can be very easy. The only problem is credit cards have higher interest rates, so you’ll end up with less money on your bottom line. A HELOC could save you a lot of money.

Another advantage: HELOCs act as a revolving line of credit, meaning the limit is replenished as you pay it off and can be used repeatedly. Interest does accrue, but there are no set monthly payments so you can pay it off at your discretion.

What Types of Home Improvements Pay Off?

The best improvements for increasing your market value will vary according to your geographic region and buyers’ tastes, but certain improvements are always sound. Think of the things you’d like to see in a house you’d buy! According to our search, good home improvement ideas include:

  • Replacing or Improving a Front-Entry Door
  • Adding a Wooden Deck to the Backyard
  • Converting an Attic Space into an Extra Bedroom
  • Investing in a Back-Up Power Generator
  • Kitchen Remodels including New Countertops, New Appliances or Sink
  • Bathroom Remodels including New Tub, Countertops or Vanity
  • Replacing or Improving a Garage Door
  • Landscaping the Front Yard with new Stonescaping or Gardening

Overall, it’s the easily-noticeable cosmetic improvements that will attract buyers and give you a higher market value. After all, who doesn’t want to move into a beautiful home with a brand new kitchen?

How to Get a HELOC at United Financial

If you hold your mortgage with United Financial Credit Union, you’re already a step ahead! If your mortgage isn’t with us, the first step is to bring it here! You may even be able to refinance and lower your monthly payments!

Once your mortgage is here with us, applying for a home equity line of credit is easy! You can call or schedule your pre-approval appointment online. A professional will be sent to appraise your house, and from there you work with our lenders to figure out terms.

Ready to start improving your home’s value? Apply for a HELOC today!