Opening a HELOC in the Spring Can Make Home Renovations Easier

As spring approaches, many homeowners may be considering exciting home improvement projects. Renovations are a great way to elevate your living space and increase the value of your home. But they aren’t easy, and planning ahead can help you avoid financial stress later. 

That’s where your financing strategy comes in. Whether you’re looking to replace a bathroom sink, expand the square footage of your patio, or prepare to put your home on the market, a Home Equity Line of Credit (HELOC) is a low-interest way to help finance improvements and add value to your home. 

What is a HELOC?

A HELOC is a revolving line of credit commensurate with the equity in your home. It works like a credit card, meaning borrowers can draw down funds as they need them and pay them back incrementally by making monthly minimum payments. Usually, borrowers can take up to a certain percentage of the value of their home minus what they owe on their mortgage, using the line to draw on and repay as their cash flow allows. 

Unlike first and second mortgages that have fixed rates and payments, HELOCs have a variable rate that adjusts as the Prime Rate changes and allow draws and repayments throughout their life that meet your cash needs. Because they’re secured with your home’s equity, their interest is much lower than typically found on other instruments like credit cards.

Why open a HELOC in the spring? 

Springtime is the perfect opportunity to take advantage of the financial benefits of a HELOC. In spring, seasoned contractors are eager to take on home renovation projects that require their professional expertise and labor—meaning you may be able to find better rates on their services. In addition, getting a head start earlier in the year on home renovations can offer leeway in the event of unexpected circumstances delaying your project plans.

If you have children, you know that it can be difficult to get things done when they’re around the house. Take advantage of the end of the school year to make progress on renovations before the kids are home for the summer. 

Spring is also a popular time of year to put homes on the market, as they tend to sell faster and at higher prices. If putting your house up for sale is a goal for 2022, consider a strategic improvement, like adding insulation or updating a bathroom, to add value to your living space. A HELOC can help you fund these upgrades—and net a greater return when you do sell.

Financing made easy with your community bank

At First American Bank, our team of experts can guide you through the process of taking out a HELOC. One of our dedicated loan experts will work closely with you to understand your entire financial picture and home improvement priorities and determine precisely how a HELOC can help you accomplish your goals. Whatever your financial situation may be, our loan officers can help you access the resources you need to do what inspires you.


Subject to credit approval. Standard rates apply.

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