Is Your Home Holiday Ready?
The holidays are a time for celebration, and that means houseguests, family dinners, and socializing with friends. But this year, maybe you’ve started to notice that your home isn’t quite up for the task.
If you enjoy hosting and entertaining, then having only one bathroom in your home to accommodate all your many, many guests becomes rather awkward. Your outdated kitchen appliances become entirely inefficient and non-functional for your culinary needs. Your tiny kitchen becomes a big source of frustration if you’re attempting to prepare a multi-course holiday meal for a large group. And that cramped space that serves as your family room—forget trying to gather a large, high-spirited crowd of revelers to watch the game. If there’s no place for your guests to stand or sit, well, where’s the fun in that?
Sound all too familiar? Then maybe it’s time to consider a home improvement refresh to bring your up home up to speed and in step with your entertainment needs—and, it may be more affordable than you think with a home equity loan. Let’s take a look at what an equity loan is and how it can be advantageous to you.
What is a home equity loan?
Just like a normal loan, a home equity loan gives you a fixed sum of funds that you pay back to your financial institution over the life of the loan. However, it’s important to keep in mind that you are using your home as collateral to secure the loan. Therefore, before you apply for an equity loan, you should take a careful look at your financial situation to determine if your home renovation project will realistically fit into your budget.
5 stand-out features to consider
If you’ve lived in your home long enough to build equity, borrowing against it can be a great way to secure the funds you need for your various projects or personal expenses. So what makes an equity loan such a stand-out when it comes to securing affordable financing? Let’s take a look:
- Multi-purpose use. Home equity loans can be used for a variety of purposes such as: educational expenses, vacation and travel expenses, debt consolidation, home improvement projects, and more.
- Affordability. Since an equity loan is secured by the equity you have in your home, these loans oftentimes have lower interest rates and longer repayment terms.
- Predictable, fixed monthly payment. With a fixed-rate equity loan, your monthly payment remains fixed over the length of the loan term, which makes it easier for you to budget.
- Tax deductible¹ incentives on interest. The interest you pay on your equity loan may be tax deductible, which can make an equity loan a smarter choice than choosing to deplete the reserves in your savings or choosing to run up a large balance on a high interest credit card.
Ready, set, refresh? PenFed can help
We all want to be a gracious host. However, if those long overdue home improvement projects have tested your patience above and beyond this past year, then it’s time to check out PenFed to see what we can do for you. PenFed offers great rates on both home equity loans and HELOCs.
The holiday season is a busy time of year, but now is a great time to start thinking about the year ahead. Apply today and get a jump on your home’s much deserved refresh before the next holiday season rolls around!
¹ Consult your tax advisor to determine if the interest paid could be tax deductible.