SEATTLE — Summer can lead to finally tackling those home improvement projects that we've been putting off. Whether it's a new deck, updating your kitchen, or adding that dream outdoor space, funding those upgrades can sometimes be a big question mark. That’s where Kitsap Credit Union can step in to help.
Simon Powley Chief Revenue Officer of Kitsap Credit Union gives his tips for financing home projects in a smart way.
“The first thing I would recommend would be a home equity loan. What that's going to do is allow you to tap into the equity of your home,” Powley said. “It gives you a little bit lower interest rate than traditional other financing measures. It gives you fixed installments so you can still stick to a budget and really determine how much you can afford on a monthly basis but still be on an accrual basis where you're going to pay it off at the end of the day.”
If you need something with greater flexibility for smaller or ongoing projects Powley recommends a home equity line of credit.
“It’s similar to a home equity loan but think of it as credit card attached to your home. It gives you flexible spending. You can make a smaller down payment you make into smaller payments per month to allow you to do that,” he said. “It gives you flexibility to kind of lever up and pay for the whole project and then incrementally pay it down over a period of time. And usually if it's tied to the home, it's a little bit lower interest rate and could have some potential tax deductions for you.”
If you don't want to use their home equity Powley recommends an unsecured loan.
“You can do an unsecured loan much the same way you do fixed amount scheduled payments on a monthly basis to pay it off over, say, 3 to 5 years or whatever you're comfortable with from a budget perspective,” he said. ”Or you can do a traditional Kitsap credit card. We have low introductory rates; a low interest rate compared to a lot of our competitors. So, you can use that to pay for things and then again, set up either incremental loans and installment loans and installment payments over a period of time, or pay it off as you'd like to.”
Because they are a credit union and not your typical bank, Kitsap Credit Union has great rate perks for members.
“We are member owned so think of that when you join a credit union, you're actually an owner and a member of that credit union,” Powley said. “Instead of paying back, you know, quarterly basis to shareholders, we pay back our members in terms of lower interest rates on loans and higher interest rates on deposit products. We will pay back our members with lower interest rates traditionally than other financial providers.”
To apply, call 800-422-5852, visit their website or your closest Kitsap Credit Union. If you ever need help with online banking the Kitsap Credit Union app is easy to use and full of helpful information and video tutorials to help walk you through the process.
Powley’s final tip is to start by getting a budget and go through the approval process.
“If you want to apply for a home equity loan, go through that and get a budget in place and talk to one of our member specialists. So you know what you can't afford, because you certainly want to budget and be conscious about how much you want to take on from an obligation perspective.”
If you're ready to bring your home improvement plan to life this summer, connect with Kitsap Credit Union online, by phone or in person. For more information go to their website.
Sponsored by Kitsap Credit Union
Segment Producer Rebecca Perry. Watch New Day Northwest 11 a.m. weekdays on KING 5 and streaming live on KING5.com. Contact New Day.