Renovating your home can make your space more functional and also renew your love for it, but a remodelling project may take more than you want to spend right now.
What if I told you that the solution to financing those upgrades is under your roof? Your home can basically fix itself up through a home equity loan.
Home equity refers to the portion of your estate that you currently own. If you’re paying a mortgage, then it would be the difference between the value of your property and how much you still owe on your mortgage.
With a home equity loan, which is sometimes referred to as a second mortgage, you can use that part of the home you own (the equity) and turn it into cash! This type of loan lets you use your home as collateral and the more of the home you own, the more you can borrow.
Many homeowners have used their home equity to enhance their homes and it could be a wise choice for you, considering the obvious benefits.
- Low interest rates
Lenders feel safer offering home equity loans because they are secured by property. This is reflected by the lower interest rates they tend to come with, compared to unsecured loans like personal loans or credit cards. At JN Bank, you can access up to 85% of the market value of residence or up to $15 million, whichever is less, and at an interest rate 8.5 per cent.
- Long periods of repayment
Home equity loans typically offer long repayment timelines, and this extended period, coupled with the lower interest rates, can result in manageable monthly payments, giving you space to breath and comfortably budget for your other responsibilities. With a JN Home Equity Loan, you get up to 15 years to repay.
- Increases your borrowing power
The affordable rates which come with a home equity loan will help to ensure that you can consistently make your monthly payments and maintain a good credit score. A good credit record will allow you to easily access other loan products or businesses.
- More money/value for your home
Taking out a home equity loan to make home renovations can increase the value of your property and indirectly help you to net a higher sale price for your home should you decide to put it on the market later.
- With a JN Home Equity Loan, you also get:
- 20% Discount on Motor Insurance from JNGI (per motor policy)
- Up to 20% in discounts from over 100 JN Rewards partners island-wide
Considering the above, I’d say using your home’s worth to improve on its own worth would make a good investment story. But don’t take my word for it; speak to a mortgage expert and do your own research to find out if it’s the right option for you.
For more information on how to get started with a JN Home Equity Loan, click here.
