If you’re lucky enough to have a low, pandemic-era mortgage rate, congratulations! You’re benefiting from record low interest expenses and likely have accumulated a fair amount of equity, too! As time passes since your purchase, you may be considering financing some repairs or improvements to your home.

Here are a few ways to access cash from your equity without losing your current interest rate:

#1: Home Equity Loans or Lines of Credit: A home equity loan or HELOC allows you to borrow up to 95% of your home’s value beyond your current loan(s). This option typically offers lower interest rates compared to other loans and can be a flexible way to fund larger projects. 

#2: Home Improvement or Construction Loans: These loans can be based on your existing equity or, with the right loan type, on the projected value of your home after the project is completed. This option is perfect for significant renovations that increase your home's value. Consult with a Greenway Loan Officer to understand the terms and ensure it aligns with your financial goals.

#3: Personal Loans: Unsecured personal loans are based on your credit history and ability to repay rather than the equity in your home. These loans can be a quicker and simpler solution, though they often come with higher interest rates compared to secured loans.

#4: Credit Cards: Credit cards are often the easiest to use but can be the most expensive option due to high-interest rates. Some homeowners initially charge expenses on their credit cards and later refinance or use an equity loan to pay off the balances. This method requires careful planning to avoid accumulating high-interest debt.

#5: Cash: Using your savings to pay for home improvement can make sense too as it avoids the need to take on additional debt.However, it's important to remember that by tying up your cash in your home, you may need to borrow or sell in the future if unexpected expenses arise.
 

Bottom Line:
There are multiple avenues to finance your home improvements without sacrificing your low mortgage rate. It’s essential to evaluate your options and choose the one that best suits your financial situation and goals. Reach out when you’re ready, and the Greenway Team can help you find the best option for your specific scenario. With our expertise, you can make informed decisions to enhance your home and financial well-being.