Fitzsimons Credit Union

rss

Fitzsimons Credit Union blog


Using Equity Loans to Winterize Your Home

Using Equity Loans to Winterize Your Home

Using Equity Loans to Winterize Your Home

There are all sorts of ways to guard your home from the winter elements. Some are cheap and may even fall in the do-it-yourself category, like adding weather stripping and caulking.

Other endeavors, such as swapping out single-pane windows for energy-efficient double panes, or replacing a furnace, are beyond the skill set of most homeowners — and often beyond the balances in many savings accounts as well.

In that case, taking out a home equity loan or line of credit may be the answer. Here's what you should know before you do.

Take stock

If you know your home needs winterizing, it makes sense to get going on those projects in summer, or sometime before it gets really cold outside. It's a lot easier to work a caulking gun when your teeth aren't chattering or to have your furnace serviced when demand is down. Of course, it’s never too late to make much needed home improvements.

What's on your list? Many utility companies offer free energy audits and tips on improvements you can make so that your home doesn't lose heat so quickly, saving you money on your heating bill.

Drafty doors and windows may be something you or a handy friend can handle. For many homeowners, though, installing storm windows or storm doors and adding insulation to an attic — particularly if access is tricky — might start to push the envelope and that’s when it is a good idea to contact a professional.

Hire a contractor

If you know your heater is reaching the end of its run, or your gas furnace's flame is burning yellow instead of blue, it's probably time to hire a contractor.

You can avoid headaches that come from dealing with unscrupulous or second-rate contractors by researching their backgrounds and reputations before seeking bids. Check government websites that compile licensing and business records, as well as consumer-oriented sites such as Angie's List, your local Better Business Bureau or, if you live in one of the many metro areas it serves, the Consumers' Checkbook.

It's usually a good idea to get at least three bids, and to ask for client references.

Decide how to pay for it

If you don't have enough savings to afford winterizing your home, look into taking out a home equity loan or home equity line of credit. Typically, both loans and HELOCs:

  • Carry lower interest rates, compared with, say, a credit card.
  • Are secured by the equity in your home; this means you can qualify for a bigger loan but also that you are using your home as collateral.
  • Allow you to deduct interest come tax time, under the IRS' home mortgage interest deduction.

And when evaluating whether to grant either type of loan, and when setting an interest rate, lenders are likely to weigh the value of your home, how much you still owe and your creditworthiness.

But there are significant differences. With a home equity loan, you receive your money in one lump sum, and the terms call for a fixed interest rate and repayment over a specific period of time.

By contrast, a HELOC is a revolving line of credit, similar to a credit card. You pull from it as needed, up to a specified amount. HELOCs also come with variable interest rates. You pay only on what you draw, but the rate may rise or fall from what it was when you took out the line of credit. Many HELOCs also come with specified draw periods, followed by a repayment period to pay back the outstanding balance plus interest. Fitzsimons is offering members no closing costs* for new HELOCs until October 31st! Those who are interested can apply online or call (303)-226-8509 and ask to speak to a Financial Consultant.

Keeping warm in the winter is certainly a good reason to tackle a home improvement project. And because your home is probably your single most valuable asset, it makes good sense to keep it in top condition — to maintain or boost its value for resale, or to pass it along to your kids. For important big-ticket items, home equity loans are a reasonable route.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

 

*Promotion expires 10/31/2019. APR = Annual Percentage Rate.  Offer valid on HELOCs originated during the promotional period; existing Fitzsimons Federal Credit Union (FFCU) loans are not eligible. Introductory APR locked for first 12 months of the loan term then varies at the Wall Street Journal (WSJ) Prime Rate plus or minus a margin, adjusted monthly. Minimum loan amount:  $15,000. The Home Equity Line of Credit margin is based upon the borrower(s) credit score, CLTV (combined loan-to-value), and occupancy status. APR has a floor of 3.50% and a ceiling of 18%. HELOC rate based on Wall Street Journal Prime Rate, plus or minus a margin (currently -1.00% to +4.00%) . ^No closing costs for HELOCs under $100,000 in most cases. Property insurance or flood insurance may be required. Credit qualifications apply, including, but not limited to: credit worthiness, location of collateral, type of collateral offered, and ability to repay; verification of income may be required.  Nothing herein is or should be interpreted as an offer or commitment to lend. Offer, rates, terms, and conditions subject to change at any time. HELOC Payment Example: Loan of $50,000 at 6.00% APR will have a monthly payment of $500 during the draw period and a monthly payment of $555.18 during the repayment period. Fitzsimons Credit Union is an equal housing lender, NMLS# 459085. Must be a Fitzsimons Credit Union member to participate. Federally Insured by NCUA.




Comments are closed.


Tags

equity mortgage skimming telephone scam 104EZ 1st home 1st Mortgage 2nd Mortgage a partnering credit union accounts anniversary anschutz ANSCHUTZ CAMPUS anschutz campus credit union anschutz credit union anschutz credit unions anschutz financial institution apps ATM atown AURORA aurora community Aurora Credit Union aurora credit unions auto auto loan auto loans AUTO PROMO auto promotions auto purchasing AUTO REFINANCE black friday borrow budget budgeting budgets building credit building teen credit business accounts buying a house buying a new car buying an old car calls car buying CAR DEALS car financing car refinance CARBUYING carbuying for teens Cardvalet cars CARS IN AURORA cars to fit your family checking Children savings accounts childrens hospital Childrens Hospital Colorado childrens miracle network childrenshospital CHRISTMAS MONEY christmas presents cmn college college affordability Colorado Comitis Crisis Center Community community credit union Community Involvement Aurora conserve credit credit building credit card credit history credit report credit score credit union Credit Union Leaders credit union strong Credit Unions for Kids credit unions in aurora CUNA cutting costs cybersecurity data breaches debt debt-payoff Denver Area Credit Union deposit diy do it yourself Dreams Thrive Here drive-in education Emergency Funds equifax Executive Team experien extra income Extrasbenefits Fin Lit finance a business finances financial education financial fit financial goals financial literacy Financial Literacy Classes financial mistakes financial planning Financial resources for parents FINANCIAL STABILITY financing your vacation finding the right car for you Fitzsimons fitzsimons army hospital FITZSIMONS CREDIT UNION Fitzsimons Credit Union CEO fraud free credit report free tax help getting ready to move gift cards Giving Back goals Grocery Cart Races h&r block h&rblock heloc Helping the homeless hispanic outreach historic aurora history holiday accounts holiday budget HOLIDAY LOAN HOLIDAY SAVINGS holiday shopping' holidays home home buyer Home buying home improvements home investing Home Loans home selling homebuying homebuying mistakes housing how to prepare house to be sold how to save money on auto loans identity identity theft ilovemycreditunion income tax income tax return insurance interest rates Internal revenue service International credit union day invest IRS Juntos Avanzamos Juntoz Avanzamos Keller William:5280 Home Team kellerwilliams lastpass leasing a car library LikeABankButBetter line of creditt loan loans LOCAL Making a Difference making your money work for you member appreciation event. member benefits Millennials house mobile app mobile deposit money mortgage Mortgage Loan mortgage refinance moving my tax return national credit union month Nerdwallet new car new home new vs. old car NEW YEARS FINANCIAL RESOLOUTION new years resolution new years resolutioons online online learning and fun online safety Partnering Credit Union phone photo deposit ProtectMyID rainy day fun read realtor advice red rocks REFINANCE representative retirement safety SandraNeves save SAVE FOR THE HOLIDAYS saving Saving for a vacation SAVING HABITS saving money SAVINGS savings for children savvy saver accounts scam Scholarship scholarship grants school security security breaches selling your home selling your house senator Small Business small business loans small houses smart savings smartphone southlands Southlands credit union spanish speaking stanley marketplace starting a business stolen identity student loans SUMMER SUMMER DEALS summer vacation taming the debt dragon TAX HELP tax prep software Tax refund Tax return tax season tax tips Taxes teachable moments teaching children about money teen accounts teen debit cards teen scholarships thanksgiving thanksgiving dinner This Is Aurora TOGETHER WE ADVANCE TURBOTAX university used car used car loans Vacation vacation savings vacation tips VEHICLE REFINANCE Von Willebrand Disease VP of Finance wealth winter is coming WITHHOLDINGS Youth youth month youth savings accounts

Federally insured by NCUA |  Equal Opportunity Lender  |  © 2019 Fitzsimons Credit Union  |  303-340-3343  |  1-800-933-5839

Fitzsimons Credit Union recognizes the importance of ensuring our website is accessible to all users. We are in the process of redesigning our site in accordance with the requirements of the Americans with Disabilities Act (ADA) and will be publishing updates to the website within the next several months so that our content is readable via non-graphical, text-only browsers. We appreciate your patience during this process.

FitzsimonsCU.com links to third party websites that may not be controlled or owned by Fitzsimons Credit Union. Fitzsimons Credit Union may not be responsible for the content of the alternate web site neither does it represent either the third party nor the member if the two enter into a transaction. Fitzsimons Credit Union does not represent either the third party or member if a transaction is entered. Privacy and security policies may differ from those practiced by FitzsimonsCU.com.

NMLS #459085
     
Shared Branch Logo  CO-OP ATM Logo Centennial Logo
 

 

  
 

AFF NCUA LogoEqual Housing Logo      

Please Note:

You are now leaving the Fitzsimons Credit Union website. We are not responsible for
the privacy practices of any other web site. We encourage you to read the privacy policies
of any web site you access, especially if individual identifying information is being collected.

Fitzsimons Credit Union does not represent either the third party or member if a transaction is entered.

Continue Cancel

Don't ask again