American homes now have a median age of close to 30 years, says Harvard University’s Joint Center for Housing Studies.  It adds that everything from doors to windows to hot water heaters to roofs are now in need of replacement.

Additionally, many homeowners want to update or expand their homes.  If you recently refinanced at a lower rate, it may make sense for you to improve your house, instead of making a move-up purchase.

You can tap into your homes equity in a couple of ways to help finance these costs.

A Home Equity Line Of Credit works like a credit card; you only pay interest on the funds you are using. You can pay down the line and use it again down the road for other improvements, vacations, a new car or your child’s tuition.  You can draw on these lines for up to 10 years, and have up to 20 years to repay them. Equity lines are frequently tied into the current prime rate, so when the prime goes up or down, so does the rate which you are repaying the balance.

An Equity Loan or Second Mortgage can offer you a lower fixed rate for a set amount of money. You would receive all of the funds up front, and make one easy payment per month until the loan is paid back, typically 20-25 years.

Either way, if you are thinking about making home improvements, and would like to explore one of these possibilities, call Maximum Mortgage today. We have a loan to fit your needs