Monday, April 22nd is Earth Day. It is an annual celebration that honors the achievements of the environmental movement and raises awareness of the need to protect the Earth’s natural resources for future generations.
Many homeowners are looking to make their homes more sustainable. Upgrading to green technology like solar panels, heat pumps, and energy-efficient appliances not only reduces your carbon footprint but can also lead to significant savings on utility bills. However, the upfront costs of these upgrades can sometimes be substantial. This is where home equity lending becomes a vital tool in your journey toward a greener home.
Home Equity, by definition, is the difference between what you owe on your home and what your home is worth. So, a Home Equity Line of Credit extends you credit by using that equity as collateral for the loan. An important ratio in a home equity transaction is your “loan-to-value” (LTV), which takes into account what you owe on your first mortgage and what you would like to borrow from the equity, and compares it to the appraised value of your home.
Your home equity is more than just a part of your financial portfolio; it is a key that can unlock the potential for significant environmental improvements in your home. Whether you are looking to install solar panels, upgrade to a more efficient heating system, or invest in other green renovations, your home equity can provide the financial foundation you need.
To learn more about a Home Equity Line of Credit, contact NCCFCU today!