The Mercury (Pottstown, PA)

How to choose the right loan

Look for the right option to remodel your home, make a large purchase, or consolidat­e debt

- By Jim Wechsler Senior Vice President, Chief Retail Lending Officer, WSFS Bank

With so much talk around home buying and refinance rates driving the housing market this summer and fall, many want to capitalize on the low rates. Homeowners are choosing to make improvemen­ts to their existing houses to accommodat­e remote working and schooling, or other comforts to gain more living space.

There are great options for homeowners with projects of any size, from a small kitchen facelift to finishing basements or attics to make them livable areas. Other homeowners who have equity in their homes but don’t need to renovate may choose to consolidat­e debt or make a large purchase.

Are you looking to renovate your home? Happy with your home but interested in a boat, RV or debt consolidat­ion?

Here are some financing options to consider.

Home Equity Loan

Looking for predictabl­e, fixed payments and the flexibilit­y to use your home’s equity in a variety of ways? If you answered yes, then a home equity loan is a great option for you.

With a home equity loan, you get set payment terms and can use the funds for home projects or other needs, such as paying for a child’s college tuition.

Home Equity Line of Credit (HELOC)

If you want to use equity for a revolving credit line, like a credit card, that you can dip into when needed over a longer period, consider taking out a HELOC. With this type of variable interest credit line, you have access to funds for up to 10 years (the draw period) with as many as 20 years to pay the loan back (the repayment period) in full.

Home Improvemen­t Loan

If you have a renovation or addition but not much equity, a home improvemen­t loan may be a fit for your needs. With fixed rates and terms, you can know exactly how much you will pay for the project and for how long.

The funds must be used for a home improvemen­t project and you’ll need the estimates and invoices to submit to your bank.

Personal Loan

A personal loan is a great option for newer homeowners who have not built up enough equity but want to expand or renovate their home, while also having the flexibilit­y to use some or all of the funds for things like debt consolidat­ion or a wedding. Personal loans have fixed rates and terms with low minimum loan amounts, but the rates are typically higher than a home improvemen­t loan.

A personal loan is also a good option for renters who need cash to set up a home office or remote learning space, or to consolidat­e debt as they save for a home purchase.

Whatever your home renovation or improvemen­t project may entail, financing options are readily available with flexible options for additional short and long-term uses.

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Wechsler

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