Are You Looking to Renovate or Improve Your Home?

You may be asking yourself how you're going to pay for all your remodeling plans. What are your options?

• Credit cards, with high finance charges
       and late fees
• Home improvement store accounts, whose
       "teaser" rate will jump in a few months
• Unsecured installment loans with sky-high    
       interest rates
• Dealer/contractor padded "deals"

But have you considered using your home equity to cover the cost of renovations? As a homeowner, you're in an ideal position to use the growing equity in your home to finance home improvement projects. This is one of the smartest means of financing. You have several options:

1. Take a Cash-Out Refinance

This is a good solution if you have little equity in your home but want to refinance to make significant home improvements. For instance, you can refinance your existing mortgage for a higher amount using the value you're adding to your home through home improvements. With most other forms of financing, the amount you can borrow is based on the value of your home in its unimproved conditions.

• Renovation costs are consolidated with monthly mortgage payments
• Lump sum amount
• Refinancing at a better rate may be a good decision for the long term
• May result in a lower monthly mortgage payment

2. Consider a Home Equity Loan

This is a smart choice for homeowners who know the exact cost of their remodel or need available funds at the beginning of the project. Allpointe Mortgage offers specialized home equity loans that allow homeowners to borrow against the value of qualified future improvements to their homes.

• Interest may be tax deductible (consult your tax advisor)
• Secured loan, which may result in lower rates
• Can be closed faster than refinancing process
• Best if you need a lump sum amount quickly
  

3. Home Equity Line of Credit

This may be a better choice for homeowners who don't know how much cash they'll need for their remodeling project or when they'll need it. This is a good way to finance longer home improvement projects because it allows you to draw from a reusable source of cash.

• interest may be tax deductible (consult your tax advisor)
• you will pay interest only on the amount you borrow
• best for periodic needs
• funds can be re-used as they’re paid off, up to the credit limit

Start with an approved home equity line of credit account. Call us at 866-255-3535 to speak with an
Allpointe Mortgage Advisor today.