Thinking of adding a Solar Array to your home? Get a HELOC!
I am asked often about the best investment to make your home more efficient. Well times have changed a bit from years past. Solar is the answer if you have a south-facing unshaded roof. However, most people don’t have an extra bag of cash lying around to pay for their power up front (install solar on the roof). So I asked my friend Duane to tell me about the best way to finance your solar array. Here is his answer:
USING HELOCs TO IMPROVE YOUR HOME
Have you been considering the addition of solar or other energy-saving modifications to your home? Are you trying to decide on how best to finance your home improvement projects? If so, it may be time to consider using the equity in your home to enhance your home. Home Equity Lines of Credit (HELOCs) are a popular and low-cost option for funding special projects. Most HELOC plans will allow you to borrow up to 90% of your home’s value and provide those funds for you to use however you see fit and because HELOCs are a home loan, the interest you pay on the loan may be tax-deductible. HELOCs are essentially a 30 year loan with a 10 year draw period. The payment on the funds borrowed is based on a 20 year amortization so basically, if you borrow the entire limit of the Equity Line on the last day of the 10 year draw period, you still have 20 years to pay it back.
A little about PVFCU
At Park View Federal Credit Union (PVFCU), we are introducing some very special enhancements to our HELOC programs. First, we are currently paying all closing costs on HELOCs up to $75,000. Depending on the location of the property, these closing costs usually range from $300.00 to $400.00. Additionally, if you decide to use the loan for the addition of Solar to your home, PVFCU will give you a 2% rate discount for the first 2 years on that portion of your HELOC. Finally, PVFCU also has a title company on site (Member’s Title) which reduces substantially the time between application and closing.
Should you have further questions about the HELOC option or about PVFCU in general please feel free to contact me. I welcome the opportunity to discuss any ideas you may have.
Business Development / HELOC specialist