Do I need a Home Equity Line of Credit or Construction Mortgage for my home remodeling/projects?
Home Equity Lines of Credit and Construction Mortgages are great financial resources for remodeling and home projects. The biggest questions to ask yourself are, “How much equity do you have available in your home?” and, “How big of a project are you looking to do?”
If your project is a major renovation and you don’t have much available equity in your home, then it may be time to inquire about a Construction Mortgage. Our Construction Mortgages are a good source of financing to create equity in your home that then is used for permanent financing. Our Construction Moan allows for up to 12 months for construction in which you are only paying interest. Once your project is complete, then the financing rolls over into a permanent mortgage.
If you have no mortgage or have paid down a bit on your existing mortgage and have available equity, then a Home Equity Line of Credit may be the best option. Home Equity Lines of Credit typically can close in as little as two weeks, allowing your projects to get underway quicker. Home Equity Lines of Credit typically have lower closing costs than construction loans and Woodsboro Bank will pay $1,000 towards closing costs. Unlike construction loans, draw inspections are not required which makes funding simpler. Our Home Equity Lines of Credit allow you to work on a project at your own pace. This line can be used for anything from renovations to emergency expenses or even debt consolidation and large purchases. Home Equity Lines of Credit are also a good option if you need money for a short period of time, used as a bridge loan. The best part is you only pay interest on what you use, and you have the availability to use, pay down and use again.
Let our team of experts help get you in the best loan to get your renovations and projects completed. Call us today at 301-898-4792.