Home     Log in    XML, RSS Subscribe Feed (RSS)     XML, RSS Comments Feed

Posts Tagged ‘home equity’

Return of the HELOC?

November 18th, 2009 by Matthew C. Keegan | 2 Comments | Filed in Home Financing

Pity the poor HELOC. Ostracized by some as demonstrating what is wrong with the American consumer, the HELOC fell out of fashion when credit tightened and the financial markets collapsed in 2008.

But, much like the fabled phoenix which rose from the ashes, the HELOC is back though not looking quite the same as it did before – yes, its wings have been singed, if not a bit clipped.

home loanHELOC Defined

Oh, what exactly is a HELOC you ask? That would be Home Equity Line Of Credit, a method for consumers to borrow money off of the value of their homes. Popularized throughout much of the past decade, HELOCs allowed homeowners to reap the rewards of their rapidly increasing home values by borrowing money to finance $100,000 kitchen renovations, enjoy expensive vacations, pay for their children’s college education, and more.

Critics hated HELOCs, blaming these types of loans with helping to push up the price of housing, encouraging predatory lenders to jump in, and putting millions of homeowners in a vulnerable position, with many people losing their homes when property values plummeted and jobs were lost.

Careless Consumers?

And you know what? The critics do have a point: a number of people were very careless, borrowing more money then they needed and foolishly spending it on stuff they didn’t need. Still, a HELOC does offer a number of benefits which is why they’re still being written by lenders and grabbed by eligible consumers.

If you’re considering a HELOC, some things HAVE changed over the past few years including:

You must have very good credit – Even if you have a sizable amount of equity in your home (and for many homeowners this no longer holds true), expect lenders to carefully look at your credit history and only offer you a HELOC if your credit score is very good.

You can’t borrow the full amount – Previously, many lenders allowed homeowners to borrow the full amount of equity in their homes. This means that if the consumer had a house valued at $300,000 and owed $220,000 on the first mortgage, then a lender would consider a $80,000 line, in some cases even more than the home’s worth. Today, you’ll be lucky to get $20,000 because few lenders are willing to let you borrow more than 80% of the value of your home.

Emergency Line

Perhaps one of the best reasons for homeowners to consider a HELOC is this one – an available line of credit to handle life’s emergencies. The last two years offered many challenges to Americans, certain thing which even worsened when funds dried up. By having access to a HELOC and using it wisely, you can borrow funds when needed to cover a crisis.

Adv. – Have you considered a HELOC? Carefully weigh your options before securing a line. Rates are low, lenders are willing and a line could help you complete important renovations to your home, including replacing your roof, windows and doors, add a room, and more. Get a HELOC quote today!


Tags: , , , , ,

Plan Now For Next Winter’s Home Improvement Projects

July 3rd, 2009 by Matthew C. Keegan | No Comments | Filed in Home Improvement

Like so many homeowners, you’re enjoying the warmer weather and longer days, the perfect time of the year to take in a vacation, hold a backyard BBQ or take in a outdoor summer concert.  But this languid season will end sooner than you want, sending cooler weather and shorter days your way.

Get Prepared Now

home contractorSummer may have you thinking about home improvement projects but chances are you’d prefer to tackle these jobs when the weather outside isn’t so delightful and the Christmas holiday season has passed. That is why home improvement and hardware stores tend to get very busy during the months of January and February as consumers decide that the winter lull is the best time of the year to handle indoor projects.

If you’re planning a significant home improvement project some six months out, you can begin to prepare now in order to make sure that your project is a success later on. The following are some tips for your review, ideas to help make your winter time project a success:

Write Up A Plan – The larger the project, the more attention to detail needed. If you’re planning to tear down an interior wall, rip up the carpeting and replacing the same with wood flooring or completing that unfinished bonus room above the garage, then spend some of your summer downtime weighing your options. You’ll be happy that you took the time to look over plans, scan the aisle of your home improvement store for ideas or researched online for what you want.

Consider Financing – Credit is tougher to get, but you may still be eligible for a home improvement loan or a home equity line of credit. Pay your local banker a visit to get a feel for the market without formally applying. It may turn out that your banker has a equity line offer that you can’t refuse. Consider your financing opportunities well in advance to make certain that you have the loan that you want and need.

Get Rid Of Stuff – In advance of your project, why not use this time to declutter? Haul off unneeded items to your local thrift shop or hold a yard sale to dispose of unwanted items. Simplify things now and your project will be easier to handle later on.

Sure, summer is here and we’re all operating at a much more relaxed pace. In your leisure time, get things organized to make next winter’s home improvement project a success!


Tags: , , , ,

Invigorate Your Yard With A Garden Path

March 30th, 2009 by Matthew C. Keegan | 1 Comment | Filed in Home Improvement, Home Tips

Gardens offer beauty and serenity to most any yard, but that enjoyment can be limited without a garden path to bring you from one end of the garden to the other. You can build a pathway that will capture your gardens sensory and visual attributes, while preserving its unique character.

Gardens offer beauty and serenity to most any yard, but that enjoyment can be limited without a garden path to bring you from one end of the garden to the other. You can build a pathway that will capture your garden's sensory and visual attributes, while preserving its unique character.

When I was a teenager, my town had a volunteer organization – Youth Employment Services (YES) – which helped local youth find temporary work with homeowners and small businesses. I was a frequent user as their volunteers helped me find work doing what I liked to do best: cutting people’s lawns.

One customer was an elderly lady whose yard was a town show piece. Her lawn was immaculate with nary a weed, but that wasn’t what stood out: her many gardens scattered around her property showcasing Japanese maples, rose bushes, azaleas, assorted  flowers, you name it announced her gardening artistry.

In her basement she grew African violets while in her living area she had assorted potted plants including a dwarf jade bonsai, zebra plants, green fern, a lemon cypress tree and other greenery I never knew the names for. A true green thumb with decades of experience to show for it.

Thankfully, I wasn’t hired to cut her lawn as she was always worrying that whoever did that job would cut a little too close to her prized greenery. I had already made the mistake of stepping on a four inch high bush, finding out later that it was an exotic plant sapling that cost $15, which was a lot of money more than three decades ago. Fortunately, I didn’t have to pay for the damage, but I learned an important lesson: watch your feet when walking through a garden.

Your Garden Path

For everything that my customer had going for her yard, there is one thing that I wished she had made good use of: garden paths. Sure, a natural walking area is nice, but not if someone has difficulty finding where the path ends and the garden begins.

The purpose of a garden path is to bring a person from one end of the garden to the other without tamping down a plant or getting lost in a jungle. Some homeowners prefer a wide, straight path that takes them directly from point to point, while others prefer a meandering garden path that has people walking by all kinds of sensory delights, adding in a bench or two if the journey is long or to invite visitors to linger and savor all within their view.

Some things to consider when building your garden path:

What sort of ground conditions exist? Likely, the area where you plan on placing your path has been previously tilled, since this is a garden we’re talking about. Still, the soil could be tamped down and numerous rocks could be sitting just below the surface, requiring that you carefully excavate the area and even out the ground.

What kind of materials do you want to use? Poured concrete will stay in place forever (or until you have it jackhammered) while concrete or brick pavers can be moved if needed. Consider using cut stones and placing them close together to form a natural looking path – however, you’ll want to make sure that that whatever materials used are not slippery when wet.

How wide of a path do you want? You may have little option for the path’s width, especially if the garden is already in place. Consider having a wider entry and exit way and perhaps use different widths for separate branches of your garden path.

I’ve seen paths which use mulch or other natural materials exclusively, but keep in mind that if drainage isn’t adequate, than you could have a muddy nightmare on your hands.

Buying Your Materials or Deferring to a Landscaper

Is laying down a garden path something that you can do? For most people that would answer would be yes. Had I had access to the same materials long ago, I might have been able to do the work for my customer, but knowing the way that she thought I believe she would have hired a landscaper.

If I were to add a garden path to my yard, I would go for natural materials such as stone, but ensure that my paths were wide enough for the average adult to walk through and well drained. Leveling sand can take care of areas that are weak while I would keep the sides of the walkway free of large plants which tend to spread and overshadow a path in no time, perhaps even housing dangerous deer ticks.

Should you decide to tackle the project yourself, you may want to drop in to your local home improvement store to see if they are offering “How to Build A Garden Path” class to customers. You’re not under any obligation to purchase your materials from them, but you’ll be able to listen to someone whose experience is invaluable and worth tapping.

Photo Credit: Renaude Hatsedakis

Adv. — For additional home improvement or garden enhancement ideas, please visit LetsRenovate.com to learn more.  Spring is an excellent time of the year to tackle important projects, allowing you to enjoy the summer months and the fruit of your labors. For major projects, visit YourEquity.com to learn how you can finance your renovations.


Tags: , , , , , , ,

Applying For An Equity Line While Times Are Good

February 2nd, 2009 by Matthew C. Keegan | 4 Comments | Filed in Consumer Financing

I hate to pitch an idea for just the sake of an argument, but if you are employed right now, then having an equity line of credit available to you can save you a lot of headaches down the road.

equity line of creditNormally, I wouldn’t suggest that most homeowners get an equity line of credit as it is debt that is drawn down against the value of your home, but these are not normal times. The risk of losing one’s job has been elevated over the past several months and will remain high for many people at least through the first half of this year. Some analysts think that millions more Americans will lose their jobs before summer arrives, putting additional pressure on the economy.

Obtaining a home equity line of credit right now is wise and for the following reasons:

  • If you find yourself in a financial bind many months down the line and are out of work, then having a credit line available will allow you to pay for life’s emergencies. A broken down furnace, leaky roof, medical emergency or some other problem could limit your options. With an equity line already in place, funds can be tapped to cover these expenses. If you wait until you are out of work to apply for credit, in all likelihood you will be turned down.
  • Obtaining a credit line now makes sense for the simple reason that interest rates are quite low. Likely, you’ll have an adjustable rate, but that rate will be much lower than a credit card or what a financing company might charge you for your new furnace.
  • Whether you use it or not, you won’t lose it. With an equity line of credit, you can tap these funds when you want and use it as needed. If you never use your line, you won’t be charged for having the it available to you. Once you draw down (borrow) from your line of credit then interest will begin to accrue and you’ll be responsible for a monthly payment.

Keep in mind that an equity line of credit is debt that is secured by your home. Like a mortgage, you are responsible for making regular payments when you draw down your line. If you sell your home and have a balance on your line, the mortgage is paid off first, followed by your equity line. Thus, the money you have left over post sale will be lowered accordingly.

My equity line of credit has been active for over a year now and I’m glad that my wife and I decided to take one out. Using it wisely, we have it in place to cover life’s emergencies as well as to fund several projects around our house.


Tags: , , , , ,