Should I Dip Into Equity and Renovate?
Many homeowners will be taking advantage of winter savings on supplies and the off-season availability of contractors to use a home equity line of credit (HELOC) to finance home renovations.
According to recent research from TD Bank, more than three quarters (80%) of responding homeowners with existing HELOCs who said they were planning home renovations for winter also said they would consider dipping into their home equity for funding.
With an average HELOC size of more than $84,000, half (51%) of those surveyed stated they plan to spend at least $50,000 on renovations as winter approaches.
Using a HELOC to make renovations during the winter is smart and cost effective, says Mike Kinane, head of Consumer Lending for TD Bank, as homeowners can often take advantage of reduced materials prices during annual sales and choose from a larger pool of contractors who usually have more accessibility during the off-season.
The most popular uses for HELOC funds, according to survey respondents were: home renovations (32%); emergency funds (14%); and education expenses (12%).
Realtor.com offers these six tips when considering a HELOC:
- Shop around. Comparison shop to get the best rate.
- Ask about the margin. If you’re offered a rate that’s lower than the competition, it’s probably just an introductory rate, so ask about the lender’s margin. For example, if the introductory rate is 3.5% and your lender’s margin is 2%, your final interest rate will be 5.5%.
- Consider a conversion clause. Some HELOCs allow you to convert a variable interest rate to a fixed rate, usually during the draw period (5-10 years).
- Watch out for balloon payments. Balloon payments mean that you must pay the balance in full when the draw period is up. Do not choose this option unless you have the financial means to handle it.
- Create a family plan. Decide what the money will be used for and who will handle the funds. Keep in mind, you can lose your home if the HELOC is not handled properly. Create a payback plan. Come up with a reasonable plan for how the loan will be paid back.
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Client Testimonials
★★★★★
Clearwater, FL Read More
Candis is a real go-getter! She stayed on top of the listing and sale of our home. She was very quick to respond to questions and had up-to-date info on any details we had our attention on. We don't know how she could have done her job any better! She was really good when it came to negotiations and closing our sale. She did what it took to get our sale completed. You will be pleased with her personality and performance handling your transaction.
★★★★★
St. Pete, FL Read More
Candis was honestly a great Realtor! We were moving from out of state, and she gave us virtual tours of each property. She paid attention to details like the smell of each home. She was always punctual and even sent us helpful reminders to guide us through the move-in process. It would have been impossible for us to make the move without her help!
★★★★★
Port Richey & Pinellas Park, FL Read More
Candis went beyond my expectations. She was cheerful and found a place for me to move to within my tight budget in less than a month. She really cares about her clients - she even helped me find a place overnight to stay and provided transportation as I don't drive. I was so grateful to have Candis as my Realtor.
★★★★★
St. Pete, FL Read More
Candis worked so hard for us. She was always on time, prepared, and knowledgeable. She was also kind and patient with her reminders and support. I can't recommend her highly enough! I had an ideal experience!
★★★★★
Largo, FL Read More
Candis is a highly experienced and knowledgeable realtor. She prides herself on knowing the market, neighborhoods, and the larger view of real estate trends across the country. Her insights, professionalism, and excellent communication skills translate to an interaction that is easy, streamlined, efficient, and effective. I recommend Candis 100%!
★★★★★
Largo, FL Read More
Absolutely amazing. Was very helpful and willing to answer all my questions to the best of her knowledge. Came back to me with more information if she didn’t have the best answers available.
★★★★★
Largo, FL Read More
Candis was very hands on and always available. She got our home sold and was a huge help in my relocation. We had lived in the same house for 29 years and were unsure how to proceed in our sale. Candis knew what she was doing and steered us in the right direction. She was always thorough in explaining each and every step.
★★★★★
Clearwater, FL Read More
My buying experience started rough with an agent who did nothing for me. Then I found Candis. I could tell the difference! She immediately began working hard for me. She is a very educated, helpful Realtor who was always a step ahead! She has a great personality and I recommend her to everyone! Even in a tough market, she made my dream of buying my first home a reality and we closed within 30 days!
★★★★★
St. Petersburg, FL Read More
Thanks to Candis for helping me find a place to call home. In what can be a very stressful experience, Candis always kept things positive and stayed on track towards accomplishing the goal. I highly recommend her for anyone trying to find the right property. I appreciated all of her market insight and creative ideas for making this property more of a home!
★★★★★
Largo, FL Read More
Candis helped my boyfriend and I purchase our first home. She made the process so efficient and easy that we never stressed about a thing! She is extremely knowledgeable and was always available to answer my questions. She is very responsive and willing to assist whenever needed. The entire process from Pre-approval to Closing was seamless and I wouldn’t want to go through it with any other REALTOR!
★★★★★
Largo, FL Read More
Candis went above and beyond to help me secure my new home purchase. There were many hiccups we encountered (at no fault of Candis). She worked hard to be an advocate for me through the entire process, even after closing. 10/10 would highly recommend. Working with Candis was like house shopping with a good friend!
★★★★★
Holiday, FL Read More
It was great working with Candis. She really cares about her clients and what they want in a home. Her professionalism is top notch.
★★★★★
Clearwater, FL Read More
Candis has a very happy personality that is so refreshing! If we had questions, she was there to answer. And she worked well with our loan team! In this extremely difficult housing market, Candis kept us positive and patient and we finally got an offer accepted on our first home! If you are looking for a realtor, Candis is the perfect one!
★★★★★
Largo, FL Read More
Candis will exceed your expectations. She is personally committed to helping people with extreme professionalism. This combination results in a realtor who anticipates your needs and provides solutions, goes 'above and beyond' normal communication, and executes on your behalf with diligence, care, and expediency. I couldn't recommend her more!
★★★★★
Largo, FL Read More
We were moving from CA to FL and Candis made house search over the next year so easy. All we had to do was tell her what we were looking for and she did all the work! She made us feel like family and went above and beyond to help find our perfect house. Candis truly is an upbeat agent who listened to our needs and wants while her fun and positive attitude made her a joy to work with. And her honesty is refreshing.
★★★★★
Largo, FL Read More
We connected with Candis when we visited open house. It was our lucky break! She never made us a feel like just a commission, nor was she impatient as we dragged out the process. She took the time to understand our wants and provided insight, opinion and reassurance throughout the process. Her experience and knowledge were very helpful and she was patient with our many changes in direction. She exceeded our expectations!
★★★★★
Harbor Bluffs, FL Read More
Candis Carmichael is a fantastic realtor. Her positive outlook paired with her professionalism is a great combination! She is smart, experienced and knowledgeable. She was in constant contact with us and always returned emails, text messages or phone calls in a prompt manner. My husband and I would recommend Candis whether you are buying or selling your home.
★★★★★
Largo, FL Read More
REALTOR Candis is a true professional Realtor. She listens to your wants and needs, then goes out to find what you asked for. She has local knowledge of all areas (which helped with our relocation from out of State). Candis responds to all phone call and text messages within a short amount of time.
★★★★★
Pinellas Park, FL Read More
REALTOR Candis is a consummate professional who guides you every step of the way and beyond the sale. She is detailed, personable and always your champion. I can't say enough about REALTOR Candis and would whole-heartedly recommend her to anyone seeking to sell or buy a home.
★★★★★
Largo, FL Read More
She is a great realtor! She listens and truly wants to help people find their forever homes. She's smart and a go-getter and we greatly appreciate everything she did to help us quickly find and buy our new home. She thoroughly explained everything during the process, answered our questions and gave great suggestions. If you want someone who cares and will truly work for you, Candis is who you need! She really is awesome!
★★★★★
Pinellas Park, FL Read More
Candis was a such joy to work with! She found us our perfect vacation home and worked hard to get everything finalized. Thank you for your dedication and constant updates during this long distance purchase.
★★★★★
St. Petersburg, FL Read More
We appreciate that REALTOR Candis was genuinely concerned with helping us find a home. We had been blown off by other agents, owners and managers who who kept stringing us along only to tell us they sold or rented out the house. Thank you!
★★★★★
Spring Hill, FL Read More
Candis was recommended and after meeting with her, we were quickly impressed with her professional manner and knowledge of the areas where we were looking to buy.
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