Update Your Home With a Financial One Home Improvement Loan

The springtime reinvigorates many homeowners to clean, improve, and even renovate their house. It is the time to freshen up your home and get that home improvement checklist done. Even if you don’t have a lot of cash to put towards improving your home, there might still be a simple option for you.

Financial One Federal Credit Union offers home equity loans to reinvest in your house, making the improvements you need and increase your home’s overall value. Some might call it a “home improvement loan” because our members take out a home equity line of credit to use it for home maintenance almost as often as it is used for debt consolidation. We gathered a list of home improvements you would be wise to make on your home that have a great return on investment and will put your home equity to good use.

1. A New Garage Door

Surprisingly, a new garage door is one home improvement project that has the highest return on investment. This is because it can drastically improve your home's curb appeal!

2. Insulation in the Attic

Besides keeping your attic free from pests and mold, insulation works to make your home's HVAC system run more efficiently. This update kills two home improvement birds with one stone!

3. Kitchen Upgrades

Have you been dreaming of granite counter tops or a farmhouse sink? If you spend your money wisely, kitchen upgrades can have a very high return on investment and are one of the first things people will notice in your home.

4. Adding a Patio or Porch

Adding a porch, patio, deck, or an outdoor living space to your home is a great way to increase the usable square footage of your property and make your home feel larger without the huge expense of an add-on. The outdoor project with the highest ROI is a well-designed fire pit area.

5. Replacing Old Appliances

If you live in an older home, there are likely numerous appliances that are running inefficiently in your home. Spending the money to install a new HVAC system or tankless water heater can really pay off in the long run.

These are just some of the many ways you can reinvest back into your home with a home improvement loan. At Financial One, we help our members transition their hard-earned home equity into budget-friendly financing options for all your home improvement needs. Stop in and ask about a home equity loan from Financial One today!

Home Improvement Appraisals: What You Need to Know

Have you been thinking about adding to or starting a renovation project to up the value of your home? Fantastic idea! The equity in your home can be your most valuable asset. There are a few things you need to know when it comes to increasing the value of your home, especially in the eyes of an appraiser.

Cost Does Not Equal Value

The amount you spend on renovations to your home doesn’t automatically add to the value of your home. Appraisers don’t simply add up the cost of your renovations to determine the new value. The value of a renovation is determined on how much a buyer would be willing to pay for them - so additions that no one wants to pay for will end up costing you money.

Take, for instance, the principle of substitution. This describes the idea that a buyer won’t pay more for a special feature in a home than the cost of renovating a similar property. To break it down, visualize two homes. Let’s say these homes are identical, except one has undergone a bathroom remodel that cost $30,000. Now say the other home could have the same remodel done for $15,000. Buyers would be more inclined to purchase the second home and do the remodel themselves, saving an extra $15,000. Thus, the owner of the first home wouldn’t recoup the full $30,000 for their bathroom renovations, but the $15,000 it would cost to get the same features in another home.

Know the Difference Between Improvements and Bad Investments

Some additions to your home are a good idea, while others could actually take away from the value of your home or drive away potential buyers. Take a look at our list below:

Improvement: Energy conservation

Energy conservation improvements, such as high-efficiency windows, solar water heaters, water-saving toilets, etc, are key to a good appraisal. Many buyers are looking for green homes, and improvements can be large or small scale.

Bad Investment: A Pool
A buyer’s children might get excited at the concept of a pool, but many buyers will look at it as a source of constant upkeep, a potential hazard for their children, and not worth the added work in cooler states (ie: Minnesota).

Improvement: Bathrooms and Kitchens

Experts agree that the best renovations you can make in your home are updates to your kitchen and bathroom. Entryways and front door replacements are a good idea as well, but kitchens, especially, should be on the top of the list for renovation projects.

Bad Investment: Special Interest Projects

Specific interest projects such as turning the spare bedroom into a library or the den into a wine cellar are also bad investments. These rooms are fun to add in relation to your own personal style, but potential new buyers will not want to spend the money remodeling a room to fit their own interests.

Bad Investments: Basements

Homeowners treasure a refinished basement, but many appraisers and buyers do not. When it comes to spending money on the value of your home, don’t put your assets in the basement. Basement renovations recoup a little over half of their cost to the value of the home. In the eyes of an appraiser, an attic project will count for more than the basement.

When you start thinking about additions to your home to up the resale value, think about them through the eyes of an appraiser. Though it may not bring up the value of your home, keep your home tidy and declutter extra furniture and decor items. This will make your home seem more open and easier to appraise. When you do decide on renovation projects, document all your renovations. If you put money into your home, be prepared to prove it. Before and after photos don’t hurt either.

For more tips on renovation projects and home appraisal, check out the Do’s and Don’ts of Home Appraisal from houzz.com.

Achieving Your Summer Bucket List

The summer bucket list: for some, it includes making your own ice cream and swimming in the dark. As we grow older, our summer goals tend to become more narrowly focused and, unfortunately, more expensive. We want to help you complete your summer bucket list, no matter how big your dreams may be! Just to help you get the ball rolling, here are a few ideas:

Vacations

Summer is a popular time to take the family on a vacation. Minnesota is the perfect state to invest in a vacation property, given our wide range of opportunity for lakefront housing. Many choose to leave the state (or even the country) each summer for a relaxing getaway. Take your loved ones on a road trip around the country or destination of your choice. If you’re more of a homebody, there are still plenty of great Minnesota-based vacation options.

Boating

The land of 10,000 lakes means 10,000 reasons to invest in a watercraft vehicle. Even if you are just using it on the lake over the weekend, investing in a boat will give you many more opportunities for summer adventures. Already have a boat? Make this summer the year to upgrade to something a little more powerful or something with a bit more space, then you can stop staring enviously at your neighbor with the new 30-foot pontoon. Add some high-quality tubing accessories onto your bucket list, and invite a few friends for a day of summer fun that will be the envy of everyone else on the lake.

Summer Home Improvements

Every homeowner has plans to build a gazebo, make landscaping changes, or make energy efficient changes to the house. The list of ideas goes on and on! Somehow, thoughts of these plans almost always end with one word: someday. Summer is the perfect time to make these changes in your home. You can also make a few necessary investments during the summer that can save you money in the winter. Need to fill up your LP tank this winter? Many times, you can get reduced prices in the summertime. Thinking of switching your heating to a wood-burning stove? Make plans now- why wait until the cold hits?

Put in a Pool!

Clark Griswold wanted to use his christmas bonus to build his family a pool, and we all know how well that turned out for him. Pools (especially in-ground) can be an extravagant expense to some, but the equity it adds to your home can end up paying for a big chunk. Let’s be honest, you’re lucky if those inflatable options you purchase at big box stores last longer than one summer. Give yourself a summertime treat that will not only improve your kids’ opinion of you, but also the value of your home!

Whatever may be on your summer bucket list, Financial One Credit Union can help. With low rates and easy payment options, completing your summer bucket list is easier than you may think. Check out our flexible loan options to see for yourself!