When you think of taking out a home loan with Resource One, mortgages are probably the first thing to come to your mind. But did you know that we offer many different types of loan products to help you improve your home’s equity, raise the value of your home and otherwise protect your home investment?
Resource One takes the stress out of applying for a home improvement loan by working with you to find the most friendly financing options available. We also walk you through the features of each loan product and give you the tools you need to calculate your monthly payments and project how long it will take to repay your loan in full.
Which home improvement loan makes the most sense for you?
Home Equity Loan or Second Lien Mortgage
A home equity loan — or second lien purchase — is a mortgage that allows you to borrow against the value of your home. If your home is worth more than you owe on it, you can use the loan funds for whatever purpose you like.
Home equity loans typically feature lower interest rates (as low as 3.99% APR) than traditional mortgages or unsecured personal loans (that is, loans not backed up by collateral). Qualifying for a home equity loan is also a fairly painless process, provided that your current mortgage account is in good standing.
A home equity loan can allow you to borrow a sizable sum of money, especially if you are carrying a low balance on your mortgage. To estimate how much you can borrow, subtract the outstanding balance on your mortgage from the current market value of your home.
You can receive your home equity loan funds either via a lump sum or through a line of credit. In some cases, you can even take a tax deduction on the interest you pay on this type of loan.
Home Improvement Loan
Whether you’re looking to remodel your kitchen or increase your home’s energy efficiency, you can do so with a home improvement loan. At Resource One, unsecured home improvement loan rates currently start as low as 5.25% APR.
In some cases, simply refinancing your existing mortgage can provide you with the funds you need to strengthen your investment in your home.
Resource One is a member-owned and not-for-profit credit union serving Dallas and Houston. We offer members a wide range of savings, checking and loan products, and our loan officers can help you make the right decision when it comes to choosing how to pay for improvements to your home. Join today to discover all the benefits you’ll enjoy when you make Resource One your primary financial institution, then get started by completing our online application.