In the last five years, home values in the U.S. have increased by a mind boggling 32 percent. Hawaii home values have seen bigger gains than almost any other state. If you have owned your Hawaii home for a few years now, you have probably built up a substantial amount of equity. If your home needs a few improvements or if you wish to remodel completely, now may be an excellent time to get a Hawaii home equity loan.
Finding Out How Much Equity You Have
Planning your home improvement projects will be a lot easier if you know how much money you have to work with. To get this amount, all you need to do is take what the estimated value of your home is and then subtract the amount of money you still owe on your first mortgage. The difference is your equity.
Planning Your Home Remodel
Once you know how much equity you have in your home, you can start to plan your remodel. Get estimates on supplies and labor costs and then add a few dollars. You don’t want to borrow more than you need, but you do want to make sure that you have enough to finish the remodeling project.
Repaying Your Loan
Though home improvements are an excellent reason to get a Hawaii home equity loan, it is very important that you are confident in your ability to pay back the money you have borrowed. With a home equity loan, your house is the collateral. If you default on your home equity loan payments, you will lose your house. Make some careful calculations prior to signing any paperwork. The average cost for a 5 year fixed rate $30,000 home equity loan is $600 per month.