Are you interested in upgrading your outdoor space but need a little financial support? Worthy Outdoors does not currently offer in house financing but a great financing option to consider is a home equity line of credit, better known as a HELOC. 

Benefits

A HELOC allows you to borrow money against the equity you’ve built up in your home. Here are a few ways this type of loan can help you build the yard of your dreams:

• Access to Funds: 
  A HELOC provides you with a line of credit, which you can use as needed. This means you can draw funds from the line of credit as you progress with your renovations, rather than taking out a lump sum loan upfront, and only accrue interest as you use the funds instead.
• Lower Interest Rates: 
  HELOCs typically have lower interest rates compared to credit cards or personal loans, making them a cost-effective way to finance your home improvements.
• Flexible Repayment: 
  HELOCs often come with flexible repayment options. You can make interest-only payments during the “draw period” (typically 5-10 years), and then repay the principal and interest during the “repayment period.”
• Tax Deductibility: 
  In some cases, the interest paid on a HELOC used for home renovations may be tax-deductible, which can provide additional savings. However, tax laws can change, so it’s essential to consult a tax professional for up-to-date advice.
• Enhance Home Value: 
  Investing in home renovations can potentially increase the value of your property. This can be beneficial when you eventually sell your home, as you may recoup some or all of the renovation costs.
• Control Over Budget:
  With a HELOC, you have the flexibility to control your renovation budget and only borrow what you need. This can help you avoid overborrowing and accumulating unnecessary debt and interest.
• Easy and inexpensive to open:
  The process of opening a HELOC loan is usually much shorter than other types of home loans. There are very few, if any closing costs and sometimes there is only an application fee (maybe around $15). 

Risks

All of that sounds pretty great, right? As with everything there are some risks associated with a HELOC:

• Risk to Home Equity: 

  A HELOC is secured by your home, so if you’re unable to make payments, you risk losing your home through foreclosure.

• Variable Interest Rates: 

  HELOC interest rates can be variable, meaning they may fluctuate over time, potentially increasing your monthly payments.

• Financial Discipline: 

  Since a HELOC provides ongoing access to credit, it’s essential to use it responsibly and avoid excessive debt accumulation.

• Closing Costs and Fees: 

  There may be closing costs and fees associated with opening a HELOC, so be sure to understand these costs before proceeding.

Final Thoughts

Before obtaining a HELOC (or any loan) for home renovations, you should assess your financial situation, create a renovation budget, and have a clear plan for repaying the borrowed funds. Additionally, it’s advisable to shop around for the best HELOC terms and consult with a financial advisor to ensure it’s a suitable financing option for your specific needs and circumstances. If you need a place to start your inquiry process, our customers here in the Fort Worth areas have had great success using EECU.