INDUSTRY INSIGHT
BANKING
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It’s Home
Improvement
Season!
Are you planning to spruce up the place this spring? Maybe
replacing that old siding or those cloudy windows, adding on
a new deck, renovating the kitchen or bathroom, fixing the
roof – the list could go on. Home equity loans are the most
common financing option for home improvements. Whether
you should choose a home equity term loan vs. a home
equity line of credit will depend on how you need to finance
your improvements.
Lump Sum Payment
If you hired a contractor to make your home improvements
all at once, then more than likely you will need to make a
lump sum payment. In this case, a home equity term loan
would be your best option. You’ll have all of the funds you
need upfront – plus a fixed rate and payment for the term of
your loan. If the monthly payments are your concern, you can
always extend the term of the loan.
When looking for the best financing for your needs, the
rate isn’t the only important factor. Look at the minimum
loan amount, too. Sometimes a lower rate requires a larger
minimum amount borrowed. So look for the loan that has the
minimum loan amount you need. Another factor that could
save you money is if the financial institution is offering a loan
with no closing costs.
Emily Kammenzind, Senior Loan Representative and
Brian Turnwald, Office Manager.
It’s never too late to start making improvements to your
home. They can increase the value of your home and they are
still tax deductible.*
Would you like to know more about borrowing? Talk
to our Lending Expert, Emily Kammenzind, Senior Loan
Representative. Also, stop by to meet our new Office Manager,
Brian Turnwald.
Multiple Payments
If you’re planning to do your home improvements in
stages, a home equity line of credit would be a good option.
It’s an open-ended loan that gives you the flexibility to
borrow again and again without having to re-apply. Also,
you only make payments when you borrow and only on the
amount you use. Line of credit rates are variable and the rate
a lender offers is generally based on two factors. The first is
the Prime Rate – which is based on the rate the Fed Funds set.
The second factor is dependent on the financial institution.
Some will add a percentage on to the Prime Rate, meaning
you’ll pay more. Some will set their rate a percentage below
the Prime Rate, which means you’ll pay less in interest.
* Consult your tax advisor regarding the deductibility of interest.
South Fayette Office and Loan Center
Newbury Gateway Shops
160 Millers Run Road, Bridgeville, PA 15017
Office: 412.257.2780 Loan Center: 412.257.2697
SOUTH FAYETTE
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SPRING 2019
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