What are my Options to Pay for a Renovation Project?

Well, if you are the lucky type you can enter our Renovation Contest on Facebook for a chance to have Biddeford Savings fund part of your project’s cost.  Otherwise, you will need a good financial plan for your project.  Assuming you don’t have the cost of the project in your bank account (which I hope is at Biddeford Savings), some type of loan will be necessary.

  1. Many homeowners use a Home Equity Line of Credit (HELOC) for improvement projects.  A HELOC is ideal for this purpose as you only borrow as needed for the project and have very flexible repayment terms.
  2. Another option is to refinance your first mortgage to fund the project.  If the current value of your house is sufficient to provide the needed funds this can also be a good option.  If you can lower the interest rate on your existing mortgage in the process so much the better.
  3. If the project is really extensive, you may need to look in to a construction loan.  Construction loans are a bit more complicated but give you an option if the renovations are going to be costly.

Regardless of which path you are considering, the first step is to speak with a knowledgeable loan officer – and it just so happens we have one or more at each of our locations, give us a call!