You
decide to add a room after they leave?
Are you thinking of adding or renovating
a room after your college student flies
the coop? Or perhaps it's time to remodel
the kitchen?
Home renovation costs
can add up.
You may need to finance
the project. But how?
You could borrow the entire amount at
once with a home improvement loan. That
means using a portion of the money to
pay the contractor's first installment,
and then tucking away the remaining amount
until the project is finished.
One problem.
The amount you tuck away is costing you
money. Another problem is estimating the
amount to borrow.
What if the cost of the project goes
up? Or you decide to add some extra features?
Going back to the bank to borrow more
money can add to your total financing
cost.
There
is a better solution.
Use your home equity
line of credit to finance the project.
Borrow the exact amount you need
(up to your available credit line limit),
as many times as you need — whenever
you need — without incurring access
charges and loan processing fees.
Pay the builder once, and then again
throughout the project by simply writing
the amount you need using your equity
line access checks.
And if you find that you need more money
for the extra features, no problem. You
can borrow again up to your available
credit line without speaking to the bank.
You will only pay interest on the amount
you borrow, which is much lower than many
other credit arrangements. And the interest
you pay may be tax deductible — additional cost savings. Speak with your tax advisor
to see if you qualify for the mortgage tax deduction.
You can set your own repayment schedule
by paying the minimum payment each month
or by paying a little extra. It's your
choice.
Using your home equity
line of credit as a "College Educator"
and "Home Renovator" gives you
total flexibility and control
. . . cash as you need it, when
you need it.
Additional
Sources:
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