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MORTGAGE KNOWLEDGE CENTER

PenFed Mortgage with Confidence

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HELOC LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

  1. Home
  2. Mortgage Knowledge Center
  3. Using a HELOC to Update Your Home's Exterior

MORTGAGE

Using a HELOC to Update Your Home's Exterior

What You'll Learn: Exterior home improvements and options for financing them

EXPECTED READ TIME:3 minutes

August 11, 2023

Using a HELOC to Update Your Home’s Exterior

When it comes to updating your home's exterior, financing options like home equity loans and home equity lines of credit (HELOCs) can provide the necessary funds to transform your property. In this article, we'll explore how a HELOC can help you revitalize your home's exterior with projects such as fresh paint, roof improvements, driveway and walkway enhancements, outdoor kitchen installations, and landscaping upgrades. Let's dive in and discover how a HELOC can turn your exterior dreams into a reality.

Basics: roof, driveway, and walkways

A well-maintained roof is essential for both aesthetics and functionality. If your roof needs repairs or replacement, a home equity loan or a HELOC can help. Consider the longevity and durability of roofing materials and hire professionals to ensure proper installation. With regular inspections and necessary repairs, your roof can last for decades.

One of the easiest and most impactful ways to update your home's exterior is with a fresh coat of paint. Sounds simple, right? Not so fast. Depending on your home’s size and the weatherproofing needs of your location, a paint job that pops can come with a hefty bill. Whether you hire professionals or try the DIY route, always remember to choose colors that complement your home's style and boost its curb appeal. Repainting every 5 to 10 years keeps your home looking fresh and protected from the elements.

Upgrading your driveway and walkway enhances the functionality and visual appeal of your home's exterior. Even more important, it safeguards against trip-and-fall hazards for your family members and guests. If it’s been a while and your driveway or sidewalk are beyond a simple patch here and there, contractors will typically recommend a complete redo; consider options such as concrete, asphalt, or pavers for their durability and aesthetics. Regular maintenance, including sealing or patching, is recommended to prolong their lifespan (about 10 years).

Elevate your outdoor entertainment

An outdoor kitchen is a fantastic addition for enhancing your home's exterior entertainment capabilities. Investing in high-quality appliances, countertops, and storage solutions can create a functional and inviting space for outdoor cooking and dining – and may increase the value of your home, giving this nice-to-have a nice return on your investment.

Enhance curb appeal

Upgrade your landscaping to create a stunning outdoor oasis with projects such as planting trees, shrubs, and flowers, installing hardscaping elements, and implementing irrigation systems. Hiring professional landscapers ensures proper design and installation. Regular maintenance, including pruning and fertilizing, keeps your landscape flourishing.

Plan your budget

To ensure you can comfortably manage the costs of exterior upgrades, many homeowners opt for a home equity line of credit (HELOC) or home equity loan. One good first step in planning your budget is a HELOC payment calculator. This tool helps you understand the monthly payment amount based on the loan amount, interest rate, and term. It allows you to plan your budget accordingly and make informed decisions about your exterior improvement project.

Financing your improvements

Before making your final financing decisions, you may want to compare home equity loan rates and HELOC rates. Research financial institutions and lenders to find the most favorable terms and interest rates. Check out online resources like a home equity loan calculator or a HELOC calculator to estimate monthly payments and determine the affordability of your chosen loan. In addition, many home improvements are tax deductible and interest on HELOCs come with certain tax benefits, too. Talk to your lender about your specific plans.

With a HELOC or a home equity loan, you can transform your home's exterior into a stunning showcase. Whether it's fresh paint, roof improvements, driveway and walkway enhancements, outdoor kitchen installations, or landscaping upgrades, financing options are available to make your dreams a reality. Explore the various loan options, compare rates, and utilize online calculators to plan your budget.    

For more information about PenFed Mortgages:
 

PenFed Mortgage: 

800-970-7766

Get Started

SIMILAR ARTICLES

Home Equity Loan or HELOC: What’s the Difference?

There are two different types of home equity loans: a line of credit or a lump sum loan. Discover the pros and cons of each and which one is best suited for what you need.

Couple calculating a budget together.

Consider a HELOC for Home Improvement Projects

Discover how to use your home’s equity for home improvement projects and renovations. Take advantage of HELOC’s low-interest rates to upgrade your home.

Couple looking over documents

Top 10 Benefits of a Home Equity Loan

From paying down debts to paying for renovations & college, home equity loans have many advantages. See what they are & if one is right for you.

files and binder on a desk

How Much HELOC Can I Get?

Learn about Home Equity Line of Credit (HELOC) min and max loan amounts, how to increase a HELOC, cost planning, and how to receive a HELOC today.

Houses in neighborhood
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HELOC LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Home Buying Steps

  • Getting Started
  • Finding a Home
  • Getting a Mortgage
  • Home Ownership

Mortgage Topics

  • VA Loans
  • Conventional Loans
  • First Time Homebuyer
  • Home Equity
  • Homebuying 101
  • Checklists
  • Adjustable Rate Mortgages
  • PenFed Top 10
  • Refinance
  • Jumbo Loans
  • FHA
  • Videos

Mortgage Products

  • Mortgage Center
  • Refinancing
  • Home Equity

PenFed HELOC

Rates as Low as % APR* with flexible use of funds

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Disclosures

1Prime Rate is % as of . The APR for this Home Equity Line of Credit (HELOC) is based on prime plus a margin and can change monthly. Fixed Rate Advances will be amortized over the Fixed Rate Advance Term, with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin, and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes.

  • Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary.
  • Home equity lines of credit (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis. Closing costs range between $500 and $8,500 for credit lines of $500,000. Contact a representative for additional details.

Appraisals: PenFed will attempt to establish value via an independent method. If that method is unsuccessful, or the value is not sufficient for the amount requested, an appraisal will be required regardless of CLTV. An appraisal is always required in the following circumstances:

For all loans with a loan amount greater than $400,000.

If an appraisal is required, it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $550 to $850 (some run higher).

  • Closing Cost Credit: PenFed will pay most closing costs associated with a home equity line of credit (HELOC), which includes credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county, and/or state taxes if the subject property is located in FL, LA, MD, MN, NY, TN, or VA. If an appraisal is required, the member, who is responsible for the fee whether or not the loan closes, will pay the cost.

Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.

Fixed Rate Advances will be amortized over the Fixed Rate Advance Term with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes and 4.75% for investment properties.

Property Insurance: Property insurance is required.

Multiple PenFed Loans: Multiple PenFed Equity loans and HELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and HELOCs the total indebtedness cannot exceed $500,000 for all PenFed Equity and HELOCs combined.

PenFed does not lend on:

  • Mobile homes
  • Co-ops or time-shares
  • Properties that are currently listed on the market for sale
  • Commercial property or property used for commercial purposes, even if a residence is part of the property
  • Undeveloped property (land only)
  • Properties with more than 4 units

Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

  • Additional limitations may apply

Home Equity Line of Credit:

  • This Account has a Draw Period of 10 years, followed by a repayment period of 20 years.
  • If only minimum payments are made during the draw period, the loan balance will not decrease.
  • In Texas, the maximum CLTV available is 80% on owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
  • In all other states, the maximum CLTV is 85% on owner occupied properties and second homes. Additional restrictions or requirements may apply based on application characteristics.
  • Property type of Condo has a maximum CLTV of 80%.
  • The maximum CLTV available is dependent on credit qualification.
  • Rates vary depending on owner occupancy and CLTV and other loan criteria.

Minimum Loan Amount Requirements in all States:

  • For an owner occupied property or second home the minimum loan amount is $25,000 and the maximum amount is $500,000 with a CLTV of 85% or less of the fair market value.

Other terms and conditions apply; call 844-918-4307 to speak with a representative for details. All rates and offers are subject to change without notice. To receive advertised product, you must become a member of PenFed.

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This credit union is federally insured by the National Credit Union Administration. Rates are current as of October 2023 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


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Routing #256078446

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IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website that is not a part of Pentagon Federal Credit Union.


The content you are about to view is produced by a third party unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Realty, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Realty, LLC, see the Affiliate Business Arrangement Disclosure.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website.


The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Title, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Title, LLC, see the Affiliate Business Arrangement Disclosure.


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