Home remodeling made easy with a home equity loan or line of credit

Yearning for a new kitchen? Would you love an updated bathroom? Or is your remodeling wish list more practical, including projects such as a new roof or siding?

A home equity loan or line of credit from Primary Residential Mortgage can be an ideal financing source for home improvements. Equity is the difference between the current value of your home and the amount you still have to pay on your mortgage, You may be able to tap a portion of your home’s equity in one of two ways: By taking out either a loan or a line of credit. A home equity loan provides the entire amount borrowed in one lump sum, while a line of credit provides access to money you don’t have to use all at once. With a line of credit, you pay interest only on the money you use, not the entire available amount.

Rates on home equity loans and lines of credit are lower than credit cards and other sources of financing, making it an attractive way to improve your home. And a recent report shows that U.S. homeowners are sitting on record amounts of tappable home equity, making it a financing option for more homeowners.

You’ve probably heard that the nation’s new tax law affects home equity financing. It does. Generally, it suspends the tax deduction for interest paid on home equity loans and home equity lines of credit starting in the tax year 2018 and until 2026. Taxpayers, however, may still be able to take a tax deduction, up to certain limits, if the funds from the home equity loan are put toward a home improvement project or renovation. (Always check with a tax professional to make you qualify or if the deduction makes sense for your financial situation.)

Want to learn more about home equity financing? At PRMI, we’re big on education. Call us today to get answers to your questions about tapping the equity in your home to fund home repair, remodeling and renovation projects.