Remodel your home and reframe your future

Home improvement can be an intimidating — albeit rewarding — process. With proper planning, you can better avoid potential complications and build out your future home successfully.

Remodel your home and reframe your future

Home equity loan vs. line of credit

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Home equity loans (HEL) and lines of credit (HELOC) are common ways to finance home renovations. Learn the differences between the two and choose the option that's right for you.    

  • Home equity loans (HEL): Borrow money by leveraging the equity in your home to receive one lump sum. HELs typically have relatively low fixed-interest rates and are best used to cover the cost of a large purchase (e.g., a new roof). Required payments are to principal and interest.
  • Home equity lines of credit (HELOC): Borrow money by leveraging the equity in your home. With a HELOC, instead of receiving one lump sum, you borrow against an approved limit as you need it. Monthly payments are based on the amount borrowed and current interest rates. Be mindful of overspending and the potential risk of variable interest rates. 

Although both may be used for purposes other than home improvement (e.g., unexpected medical bills), please talk to your accountant about the eligibility for tax deductions. Often, the interest paid on a HELOC is only tax deductible when used to buy, build or substantially improve your home.

Additional insights into home equity

Lending Insights

Time to remodel? Upgrade your borrowing know-how

Thinking of tapping into the equity in your home for ready cash and tax deductions? Bear in mind: The 2017 Tax Cuts and Jobs Act eliminated deductions for mortgage interest on home equity loans—unless you're using the money for

Lending Insights

Financing home improvement and construction projects

Construction projects from the smallest to the largest can be expensive and difficult to pay for out of savings. Fortunately, whether you are looking to remodel a bathroom, add a new bedroom or build a new home, there are several financing options available to you.
Lending Insights

How to make your home equity work for you

Did you know you can take out a home equity loan or line of credit to finance for things other than home improvement projects? If you're looking for a way to pay for your child’s college education or other expenses like a wedding, then a home equity loan or line of credit may be the answer.

You purchased a house; now make it a home

Whether you're adding a nursery or just installing those granite countertops you've always wanted, speak with a loan officer to discuss your remodeling project.

Remodeling your home - what to know

The right way to remodel

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Before grabbing your tool belt, consider this list of action items that should help put you on the road to renovations.  

  • Scope the project. You'll want to clearly define what you're looking to accomplish during this round of remodeling. You don't want to budget for a patio and wind up with a swimming pool on a whim. 
  • Get the right loan. Be sure to get the loan that works for you and your project. There are various options out there — each with pros and cons — so spend some time shopping around beforehand. 
  • Plan ahead. From required permits to seasonal factors, there is no shortage of things to consider as you're thinking about home improvement. Do your homework and/or consult a trusted advisor.
  • Shop around for contractors. Get recommendations and references, and follow-up with phone calls or meetings where necessary to ensure you're hiring someone you can trust.
  • Compare bids. Get bids from multiple contractors and compare the cost breakdowns (e.g., materials, labor, expenses, etc.).
  • Put it in writing. Draft a contract that details all aspects of a project, including payment schedules, proof of insurance, relevant dates, lien releases, etc.

Additional financing options

Home equity lines and loans

Your house is your cash reserve; tap its equity for the things you want to do. You can draw on a line of credit as you need it; with a loan you make all the funds available to yourself at once.

Construction mortgage

For a brand-new home or major renovations, you can get a construction-to-permanent loan for both the building costs and the mortgage.

Government and State Agency loans

Government programs are in place with low down payments and interest rates to get you the front door keys.

Disclosures

All lines and loans are subject to credit approval.