There are a couple of choices for homeowners who want to do some remodeling or renovations around the house but don’t have enough cash in their accounts to do it outright. Many will turn to finance options that utilize the equity their homes have accrued since they bought them, but there are definitely some pros and cons of a HELOC (home equity line of credit) that they should be aware of. Whether planning a home improvement project or needing the funds to consolidate high-interest debt, a HELOC is a good way to cover the costs of a project or charge without having to take out a whole new loan.

Rivermark Community Credit Union has both HELOC and home equity loan options, depending upon what you’re looking for. Reach out to us today to discover which is best for you and how to get the application process underway.

Home Equity Loan vs. a HELOC

If you’re not sure how much you’re going to need to cover the costs associated with your upcoming project, then a HELOC is your best bet. While a home equity loan offers a lump sum, a HELOC is a line of credit from which you can borrow against as you need to. Think of it a bit like a credit card. Even though you have a maximum, you wouldn’t use all of it at once if you didn’t need to. A home equity loan may be the right choice for some, but a HELOC offers borrowers an easier way to access money as they need.

Some of the pros and cons of a HELOC can be reviewed below. Remember, there’s no such thing as free money, and as such, the money you’re using for your debt consolidation or improvement project is still tied into the equity of your home, so use it wisely.

Home Equity Line of Credit Pros

The maximum amount you’re eligible to borrow from a home equity line of credit is linked to the value of your home. Most of the time, it’s as high as 85 percent of your home’s value, so in order to get approved for this type of loan, it’s best if you have actually have enough equity built into the home. Additionally, lenders require that you have good credit so they know they’re not just going to lose money. Again, the loan is tied into your home, with your home as collateral for the amount you use.

Some of the biggest advantages include the competitive interest rates, the repayment terms, and even the flexibility of using a portion of the loan maximum.

Lower APR

We’re at a point in time with the housing market where interest rates are lower than they have been in years. A home equity line of credit can give you the opportunity to take advantage of this. Some HELOCs even have lower interest rates than credit cards.

Take Advantage of Tax Benefits While Still Redoing Your Home

Depending on how you use the home equity line of credit, you may be able to write off the interest paid on the loan. That is, if you’re using the funds specifically to revamp your kitchen, upgrade your bathroom, add a jaw-dropping garden, or rebuild anything else that qualifies under home improvements, then the interest you will have paid can be tax-deductible.

According to the IRS website, the home equity products cannot be claimed as a tax deduction “unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.” So if you’re hoping to make some noticeable changes around your home, you may qualify for this program.

Wise Borrowing

When presented with a lump sum, you can get lost in the “potential” of that money and not budget as well as you should. With a home equity line of credit, you can take out just what you need when you need it, which can save you hundreds (if not more) in the long run. By taking the time to plan things in advance, you may be able to use less than you would with other home equity products, and that equates to a smaller monthly payment in the end.

Repayment Flexibility

There is an option to just make interest-only payments initially with many HELOCs, so that may be something to look into. There are varying repayment timelines for a HELOC, but in general, they can last up to 30 years, and that includes both the time when you’re drawing on and repaying the loan.

Cons of HELOCs

Take these cons into consideration before making a final decision.

Your Home is Collateral

Although having a secured loan can mean a lower interest rate, it’s still important to give this sort of decision a good, hard think. Putting your home up as collateral for a loan means you have to be a smart borrower and able to pay back the loan’s monthly payments. A HELOC can be a risky option for someone who isn’t diligent in their borrowing choices.

Variable Interest Rates

A HELOC does vary from a home equity loan in interest rates. While a home equity loan can give you a fixed interest rate, a home equity line of credit cannot. There will be a variable interest rate, and it means that your interest rate will be subject to what the Federal Reserve decides to do with prime and loan rates. This can be good or bad.

Equity in Your Home Will Decrease

Last, but certainly not least, you’re borrowing against your home. This means the value you’ve “accrued” over time and the worth of your home goes down once you’ve taken out a home equity product. While it means it may take longer to pay off the house in the long run, the flip side is that you’re investing in the home itself and may be able to say it’s increased in overall value. If the housing market crashes, however, there is a chance that you may end up owing more for the house (and loan) than the house is worth.

If you are planning to redecorate your bedroom then you should consider doing so in a shade of blue. Why? It is associated with calmness and serenity – and if there is one room in the house where you want to feel this, it’s in your bedroom.

Different colours result in different feelings and cause various moods. Blue is a peaceful colour known to help you relax – it’s believed to slow your heart rate, lower blood pressure and reduce anxiety. Whereas red, for example, is the opposite, it’s intense and exciting – it can increase your heart rate and actually cause you to feel anxious, perhaps due to its association with danger.

The psychological effects that colours have on us – and knowing what these are – can be beneficial when decorating the rooms around your house. Brighter colours energise and stimulate you. So while you may well regret painting your bedroom red, it could fit perfectly well in another room.

So, back to blue. Blue has long been associated with nature. Imagine sitting on the sand and watching the waves of the deep blue ocean or laying back on the grass and looking up at the light blue sky, white fluffy clouds drifting slowly across it. Both are tranquil and serene settings that make you feel calm, aren’t they? It’s a soothing colour – exactly what you want after a busy day when you flop onto your bed for a moment of peace.

Blue helps our stresses float away – quite literally, it’s known to produce a chemical in the body that helps us to feel calm and content. Furthermore, it is a colour that is known to help you sleep – which is, of course, ideal for this room.

So which shade of blue should you go for? As mentioned, bright colours can have the opposite effect, even in blue to an extent. Instead, stick to soft and neutral tones.

Now to incorporate that into your bedroom. You could pick one part of it to become blue – this might mean painting your walls in this calming colour. But, blue might not be your colour and perhaps you don’t want this on the walls. Well, there are other calming colours that will complement the blue such as a soft violet or lilac which benefits from a blue base. Then you can, of course, incorporate the blue far more subtly elsewhere in the room.

You could get yourself a nice comfy bed from Divan Beds Centre – an ottoman is ideal as you can hide away all the clutter. However calm the colour makes you feel, a cluttered room will definitely start to counteract that. Then, choose a beautiful blue bedding set complete with throw and scatter cushions. This creates the perfect tranquil space to sink into for a peaceful night’s sleep.

So, what are you waiting for? Get some blue in your bedroom and make it a space that allows you to escape your busy life and calms your mind. A room that allows you to fully relax and rejuvenate, ready to do it all again tomorrow.

One-hundred years later and the fashion and style of the 1920s is still very much appreciated and talked about. Recent films such as ‘The Great Gatsby’ has glamourized the era of the twenties and it has encouraged millennials to follow the fashion and aspire to live the high life as portrayed in pop culture. This blog post will show you how to shop for the 1920s in the 2020s and how normal objects can be adapted to look more vintage.

Wallpaper

Using 1920s themed wallpaper is a great way of making a bold statement of creating a 1920s effect in your room. Art deco styled wallpaper is the modern version of 1920s inspired wallpaper. Art deco wall paper consists of geometric shapes and metallic colouring (particularly gold), however, if you are already satisfied with pre-existing paint which is on your wall, metallic painted shapes can be painted onto your wall.

Seating

In order to have a 1920s themed room, you do not necessarily need to focus on the style of sofas which were specifically used in that decade. Instead, vintage looking sofas are close enough because the 1920s style consists of beautiful, grand and timeless classics. In particular, the Chesterfield sofa company in Lancashire offers a wide range of beautiful vintage styled sofas and it is a good place to look if you are in need of elegant furniture.

Use dark wood furniture

Dark wood was commonly used in the 1920s, if you are redesigning your dining room, a dark wood dining table would be highly effective for creating this style within your room. Furthermore, if you are dreaming of having a 1920s style bedroom, a dark wood four post bed and a dark wood walldrobe will help to give a 1920s vibe. If you already have wooden furniture, but it is light wood, you can stain the wood to make it look darker.

Lighting

Big feathered stand-alone lamps were popular in affluent households and luckily, they are also a big trend in one hundred years later, meaning they are easily accessible to buy in present day. Bronze and gold coloured stemmed lights wall lights were also popular in the 1920s. The use of metallic colours adds an expensive feel to products and if you are looking to design a high end looking vintage styled room, then the use of metallic colours will help to give that desired effect. Equally, a grand chandelier will help to give a room a regal vintage look.

Paintings

Flapper girls are a symbol of the 1920s culture, therefore, an easy way of incorporating an art deco theme into your room is to add paintings of flapper girls. Paintings of flapper girls will also add a girly edge to your room, if that is what you desire. On the other hand, if you are looking for a more masculine style to your room, the BBC’s hit series ‘Peaky Blinders’ will be an ideal topic for purchasing masculine styled paintings.

Mirrors

Vintage style mirrors are usually blurred and perfectly imperfect. Although a blurred mirror may be impractical, as it will be harder to see your own reflection compared to an un-blurred one. However, if you are just wanting the mirror to add a vintage Art deco touch to your room, then a blurred mirror is a sufficient piece of decoration. Furthermore, if you really are opposed to purchasing a blurred mirror, then simple round edged mirrors with metallic edging gives a just as good 1920s styled effect.

Curtains

Draped curtains were a popular style of curtains within the 1920s era. However, their version of grand draped curtains is highly expensive, and you will most likely need to get them custom made if you desire the exact styled curtains of that decade. Luckily, there are modernised versions of those curtains available. Those curtains are usually velvet effect and have geometric prints, with metallic colouring. Interestingly, velvet curtains are also very popular in 2020, so they are easy to find and I’m sure there are some very reasonably priced versions of these curtains readily available.

Accessories

If your desired theme is a upper class 1920s style of room, then it is a good idea to purchase random glitzy and grand accessories to scatter around your room. Feathers, beads and mirrored trinkets will help to add a classy vintage effect to your room. However, if glitz and glam isn’t your style and you would still like to incorporate a vintage theme within your room, floral accessories work just as well.