Your Helping Hand for Home Improvements
No matter the size, renovation projects can be challenging. And how to finance your plan is oftentimes the biggest hurdle. That’s where SharePoint Credit Union comes in, offering loans to help with projects big or small. As your helping hand for home improvements, we’re here to answer all your questions and provide guidance along your home equity loan journey.
Knowing the Difference
To get started, we wanted to highlight the types of loans we offer to assist with home improvements. We turned to Amy Green, Lending Manager, CCUFC, with SharePoint Credit Union, to share her insight on these loans and this process.
Variable Rate Home Equity Line of Credit (HELOC). With a HELOC, the lender approves a specified credit limit that may be used as you need it. The borrower uses his/her home’s equity as collateral.
“The HELOC is a revolving line of credit secured by your primary residence,” Green said, adding that SharePoint will also use your cabin or vacation home. This type of loan offers a 7-year draw period and a 10-year repayment period.
Fixed Rate Term Home Equity Loan. A fixed rate home equity loan lets you borrow what you need all at once.
“This is a one-time advance that is then repaid over a fixed term at a fixed rate,” Green explained. SharePoint offers terms up to 15 years, and the benefit is that because the rate is fixed, monthly payments are consistent.
The biggest benefit to taking advantage of these loans is the rate, Green said.
“Loans secured by a primary residence tend to be significantly lower than other loan products, such as a credit card or personal loan.”
How the Process Works
First thing’s first: Checking your credit score. To secure a home improvement loan, the borrower’s credit rating should be 600 or higher.
Once that is verified, the process is reasonably straightforward. And Green said the turnaround time from application to closing “can be as little as two weeks, depending on the borrower’s responsiveness and whether an appraisal is required.” Scheduling an appraisal can extend the time to closing, but Green assured that requests are preapproved before moving forward with cost-incurred services.
With HELOCs, SharePoint will finance up to 90 percent loan-to-value, or LTV, Green said. The LTV ratio compares the amount of your mortgage balance to the property’s appraised value. On a fixed rate equity loan, financing through SharePoint is 100 percent loan-to-value.
And the best part is there are no hidden fees or “fine print.” Everything is disclosed to you upfront, so you know exactly what to expect.
Finance Through SharePoint
Wondering which loan option is best for you?
“Our goal is to provide a solution that will best fit your individual needs,” Green said. “We have some of the best rates around, as well as flexible terms.”
The friendly and responsive team at SharePoint Credit Union is your helping hand for home improvements. Contact us today to discuss all the available options and determine the best financial choice for your home improvement loan.
SharePoint is an equal housing opportunity.
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