At OCU, we understand that home renovations are exciting but can also be overwhelming when it comes to financing. Recently, Roxanne Davyduke, OCU’s Chief Operating Officer, shared some great insights on Bounce Radio about the various financing options available for homeowners looking to renovate.
Roxanne began by addressing one of the most straightforward options: using cash or savings. “If you’ve been able to save enough over time,” she explained, “paying for renovations outright means you won’t need to borrow or use credit.” However, she also warned homeowners to avoid dipping into emergency funds or long-term savings set aside for other goals.
But what happens when savings aren’t an option? There are other paths to consider. One such option is to finance renovations during the home purchase, known as Purchase Plus Improvements. If you’re buying a fixer-upper, Roxanne suggested, you can bundle the renovation costs into your mortgage. This way, you benefit from the lower interest rates typically associated with mortgages and can spread the payments over a longer period.
For current homeowners, refinancing your existing mortgage is another viable route—particularly if you have enough equity in your home. “This can be a really good strategy if your renovations will add value to your home,” said Roxanne. Another flexible option she mentioned was a Home Equity Line of Credit (HELOC). This allows homeowners to borrow only what they need, pay it back, and borrow again as required.
There are also options for smaller renovation projects. Roxanne highlighted Personal Lines of Credit and Personal Loans. While personal lines of credit offer quick access to cash with lower interest rates than credit cards, personal loans provide a fixed repayment plan, which can make budgeting easier.
As always, OCU is dedicated to helping members find the financing solutions that best suit their needs. Roxanne emphasized that OCU’s offerings are tailored to each member, ensuring that they receive the most suitable option for their unique situation.
When it comes to credit cards, Roxanne advised caution. While they can be convenient for purchasing materials and tools, they come with higher interest rates and should be paid off quickly to avoid accumulating debt.
Homeowners should also explore government financial assistance programs and tax credits, particularly for eco-friendly renovations. Roxanne stressed that these can significantly reduce costs, so it’s worth researching what’s available.
Finally, Roxanne encouraged anyone considering a renovation to contact OCU. “Our team can help you find the best financing solution for your project,” she said. Whether it’s through a visit to the branch, a phone call, or an online inquiry, OCU is here to support homeowners every step of the way.
If you’re thinking about a home renovation, OCU is ready to help you turn your vision into reality.