We know that your remodel is not just some project on one of those inspirational TV shows you’ve been watching. It’s your home. It’s a big undertaking and has surely taken a lot of time and effort to get to this point.
The following is an excerpt from the six chapter of our new FREE eBook, Remodeling Your Home: Everything you need to know about remodeling.
At Washington Federal we understand. We’ve been helping our neighbors like you buy, build and remodel their dream homes since 1917.
If you choose Washington Federal to finance your remodeling project, you will be served by a dedicated branch manager. He or she will sit with you one-on-one, face-to-face and walk you through the different options to help you determine which one is best for you and your family. Our loan officers aren’t paid on commission, so we’re free to give you the personalized attention and customized advice you deserve, with no ulterior motives.
To learn more about how we can help with your remodeling project, contact the Washington Federal branch manager nearest you, or call 800-324-9375.
Consider options for financing a small remodeling project.
Sometimes it’s best to start small. Here are a few good options to finance smaller projects, such as those limited to one room or a simple fixture or material upgrade like new flooring or appliances.
For small weekend projects, consider using a credit card. You can use a low-interest card that you currently have or apply for a new one. Lots of cards offer a low introductory rate for a specified amount of time. Just be sure to pay off the balance in full before the introductory rate ends to avoid paying higher interest rates.
Home Equity Line of Credit
With a home equity line of credit (HELOC), you establish a maximum line of credit and then draw out only what you need. Expect to make interest-only monthly payments during a draw period, followed by principal-and-interest payments over the remaining term.
If you already have your mortgage with Washington Federal, you may qualify for an additional advance. An Additional Advance allows you to borrow from your current equity in one lump sum. You simply add the total budget for the remodeling project to the balance of your existing home loan. (Credit approval required.)
If you have substantial home equity, Washington Federal offers both cash-back refinancing and first mortgages based on the tax-assessed value of your home.
Options for Financing a Major Remodeling Project.
For those planning major work, home equity loans are not always the best choice. Extensive remodeling can strip out the available equity in your home, especially if system upgrades or major structural work are in the plans. For major projects such as an addition or second story, an All-in-One Construction Remodeling Loan is the answer.
All-in-One Construction Remodeling Loans
Washington Federal’s All-in-One Construction Remodeling Loan is a home loan based on the estimated value of your home after the remodel. To determine that value up-front, we order an appraisal based on your plans for improvements. The entire project is underwritten at one time and you can lock in a permanent, fixed interest rate before you even start the project. Please note that rates can change daily. Subject to a lock-in deposit.
During the remodeling project, you draw funds as work is done and make interest-only payments during the construction phase. Monthly draws from your total loan amount are released to you based on the percentage of completion. Washington Federal saves you time and money by doing our own site inspections and handling the draws right within your neighborhood branch.
When the project is finished, the loan automatically converts to a standard mortgage. The mortgage is a fully amortizing loan with principal and interest payments spread over 30 years. We also offer a 15-year term option.
We hope that this has helped you to better understand the financing options that Washington Federal offers. Please download your free copy of our eBook to learn more about the remodeling process.