Why should I open a HELOC for home improvements?
A HELOC is an affordable alternative to taking out a personal loan, credit card or home equity loan, because you can withdraw money multiple times during the home improvement process.
When you apply for a HELOC at OKCU, you can:
- Use as much or as little of your available balance as you want
- Withdraw money multiple times, instead of receiving a lump sum
- Only pay interest on the money you spend
- Close in as little as 3 days
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When you open a HELOC for home improvements:
- Create a budget for your home improvement project, and set aside 20% of your estimated expenses for unexpected costs.
- Find out how much your home renovation, home repairs, or home remodeling project could add to the value of your home. This Cost vs. Value Report from Urban Kitchens can give you more information about the value of home remodeling in Oklahoma City.
- Hold onto your financial documents, including recent paystubs, W-2s, bank statements, mortgage statements and proof of homeowners insurance, to make the HELOC application process easier.
- Hire licensed contractors, electricians or plumbers.
- Wait until you can access the money in your HELOC before hiring contractors.
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How do I qualify for a HELOC?
You will need equity in your home, which occurs when the value of your home is more than what you owe. You also need a credit score of 650 or more and a clean credit history for the past 12 months to qualify for home improvement financing.
How much can I borrow?
You can typically borrow up to 90% of the value of your home minus whatever you currently owe.
What are the terms of a HELOC?
A home equity line of credit (or HELOC) is a 10 year loan with 2 different periods, a draw period and repayment period. The draw period is 5 years, where you have ongoing access to available funds and can use the funds how you’d like. Once the draw period ends, the account enters the repayment period. The repayment period is 5 years. During the repayment period, you can no longer draw on the HELOC, and must make principal and interest payments.
Can I use a HELOC to pay for any home improvement project, such as a home renovation or home remodeling in Oklahoma City?
You can pay for a wide range of home improvements with your HELOC, including a:
- Home remodel – a remodel will alter the structure of your home to improve its aesthetic value. For example, changing the layout, adding a room or raising the ceiling. We offer workshops about home remodeling in Oklahoma City; click here to view the upcoming dates for our home improvement workshops.
- Home renovation – a renovation is designed to restore your home to its original condition. A partial or total renovation can be used to modernize an outdated space, or replicate the original look and feel of your classic house.
- Home retrofit – a retrofit will also alter the structure of your home, but unlike a remodel, the goal of a retrofit is to improve the form and function of your property. For example, adding energy efficient windows, wall heating units or stilts for houses in flood zones.
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