Tag Archives: home equity

How to Turn Your Backyard into an Oasis

Most of us have spent lots of time at home this spring, and it looks like summer might not be much different. With many attractions still closed and some states seeing a surge in COVID-19 cases, safe travel will be challenging. For many Americans, this means choosing to staycation at home instead of hitting the road this summer.

A stay-at-home summer doesn’t need to be boring. You can turn your own backyard into a summer oasis without breaking the budget. Here is how to cost effectively maximize your outdoor space. From entertaining in style to keeping the kids busy, we’ve got you covered!

Upgrade your outdoor furniture

Chances are, you’ll be spending lots of time out in the yard this summer, and whether that means sunning on the patio or sipping lemonade under the shade of a tree, you’ll feel more of that vacay vibe with the right furniture. It doesn’t have to be pricey; a little ingenuity will really make those dollars stretch.

Make your outdoor space seem bigger by creating different seating areas for different purposes. Think a cozy coffee nook for mornings, a lazy hammock for getting lost inside the pages of a summer thriller, a pair of lounge chairs for catching the afternoon sun and a patio table for entertaining guests. You can even go all out and designate a small area for nighttime fireside fun.

If you’ve already got a nice patio set, freshen it up by replacing the cushions and adding some summer throw pillows for a whole new look.

Don’t forget to take a look at your outdoor lighting as you spruce up your patio and yard. Brighten up your outdoor space with some sconce lights along the walls or string up some old holiday lights for a truly festive feel.

Add a splash of fun

It may be too late in the season to think of installing an in-ground pool, but you can still have your floating fun with an above-ground pool this summer. Above-ground pools can cost as little as a few hundred dollars or as much as a few thousand for a larger, upgraded model. Most take a week or less to install. And then it’s an endless splashing summer!

Make it natural

Yes, you’re already outdoor, but that doesn’t mean you’re surrounded by greenery. Even city slickers can add the natural touch to small apartment porches with some potted plants, a container garden or a trellis with climbing flowers. Stick that greenery wherever it can go for an added layer of relaxation.

If you want to go all-out to get that resort-like feel, consider building your own waterfall this summer. It may not be on your bucket list, but it’s a super-fun project with rewarding results.

Fun for the kids

Don’t forget to create a fun space for your kids in your backyard oasis. The sky’s the limit when it comes to outdoor play; just have fun and let your creativity flow freely. Here are some ideas to get you started:

Put up a rock-climbing wall. If your kids are climbing the walls from being home for too long, try a DIY rock-climbing kit for endless fun that also builds strength and coordination.

Build a swing set. Swing sets provide hours of entertainment, but they can get pricey. Save money without compromising on the fun factor by choosing to build a swing set yourself instead of purchasing it pre-made. You’ll have to buy materials and maybe the tools, but you’ll still come out way ahead. Plus, you can make the construction a family project that will keep everyone involved for days.

Install a backyard splash pad. Your favorite spraygrounds might be closed this summer, but you can have your water fun at home with a DIY splash pad kit. Splash pads promise hours of fun for kids of all ages.

Create a natural playspace. According to a natural playground study by the University of Tennessee, children who play on natural playgrounds, or playscapes, tend to stay more engaged than those playing on brightly colored equipment. Building a natural playspace is easy — think a small pile of sand, a set of logs arranged as stepping stones and some tall grass or plants to act as hiding spaces.


If you’re short on the cash you need to turn your backyard into an oasis this summer, we’re here to help. Our loan terms are flexible and our payback plans are affordable. Connect with us today at 503-275-0300 option 2 or email loans@usacu.org.

4 Home Improvement Projects With High Long-Term Return

When you’re making improvements to your home, you’re not just making your life better in the short term. You’re also making an investment in your future. Ideally,  the increase in the value of your home will exceed the cost of the improvement.

However, it seldom works out like that. The most efficient home improvements don’t pay for themselves immediately. The first item on this list has an ROI of 98%. That means you get back 98% of the money you put into it. To look at it another way, you lose 2% of your initial investment.

It takes years for the appreciation in your home to recoup the expense of an improvement. If you’re looking for an investment, putting your money in a share certificate or other long-term investment options will net you more. When you’re making home improvements, though, you’re looking for ways to improve your quality of life while being as thrifty as possible.

Here are four home remodel projects that can improve the resale value of your home. They’re excellent uses for your home equity line of credit (HELOC) and you may be able to save money by doing part or all of them yourself! By the way, consult your tax adviser to determine if these improvements apply for tax deductions.

Replace the front door

There’s an old adage in real estate that suggests the features get tours, but the front porch gets sales. People make decisions on home-buying all the time by starting with a gut reaction and finding reasons to support it later.

Why not start your home remodeling project with the first thing you interact with on your house: the front door. Upgrading an old, poorly-fitting front door with a newer energy-efficient model is a cheap, quick project that can instantly improve your home’s efficiency and aesthetic appeal. Best of all, hanging a door can be done in an afternoon!

With an average price of just over $1,200, including labor, an energy-efficient front door has an ROI of 98%! It’s also a chance to be creative. A new front door can add a splash of color, and window placements can break up a monotonous front profile.

Minor kitchen remodels

Replacing major appliances and installing new flooring is a difficult, time-consuming and expensive task. Being without a kitchen for weeks on end can be a nightmare, and the number of professionals needed to install new lighting and other features is mind-boggling. The national average for spending here is $57,000, and the ROI for major kitchen remodeling isn’t great, at only 68%.

Minor kitchen upgrades, like new cabinets, countertops and energy-efficient cooktops, are comparatively inexpensive. The average spend here is just under $20,000 with an estimated return on investment at an impressive 80%. Just like with the front door, the changes are mostly aesthetic. People perceive a more modern-looking kitchen as being a better fit than a more “retro” look.

This is also a chance to customize a place where you spend a remarkable amount of time. Having a kitchen laid out just the way you like it can make it easier and more enjoyable to cook. This will encourage you to eat more meals in, and energy-efficient appliances can lower your electric bills for the life of the home.

Wooden decks

Outdoor space is one of the hallmarks of the current iteration of the American dream. Where else can a family sit and enjoy a frosty lemonade on a hot summer day? Watch the kids play in the yard while tending the grill on a beautiful wooden deck!

Wooden deck additions were unpopular for years, as consumers see them as luxuries. During a recession, remodeling dollars tend to focus on needs, like kitchen and bedroom updates. Now that the economy is improving, more people are looking at decks as valuable extensions for their living space.

The average cost, based upon a 16 foot by 20 foot wooden deck, is $12,000. The average return on investment is just over 80%. This is because of the perception of expanded living space at a reasonable price. Adding a deck costs about $40 per square foot, while a square foot of inside space costs an average of $90! Decks are a great way to increase the play space for a modest cost.

Bear in mind that, just like the air conditioning in Alaska, a deck in a climate where the climate in inhospitable outdoors for much of the year will not have as much value as one in more temperate climes.

Convert an attic space into a bedroom

For most houses, the attic is an afterthought. It’s a place where unused craft projects and abandoned hobbies go to die. Consider turning that dead space into living space with a remodeling project!

Turning an existing attic space into a spare bedroom or office, complete with its own bathroom, can be done for a slightly steeper price. Nationally, the average cost is just over $50,000. That includes constructing a room, extending utilities to it and adjusting the exterior of the house to accommodate the new space.

This remodel provides a 77% return on investment in resale value, with the potential for more. If you have adult children or relatives visiting from out of town, an attic room can be a wonderful guest room. You could also rent it out for additional income!


Are you ready to get those renovation plans rolling? Don’t miss the Portland Spring Home Show at the Portland Expo Center February 20-23, 2020. Connect with our Loan Specialists to explore your financing options for your next project by calling 503-275-0300 Option 2.

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Home Equity : What It Is and Why It Matters

It is often said that home ownership builds wealth. So, what is home equity, and how can it enhance your net worth?

What is home equity?

Home equity is the current market value of your home, minus what you owe. You’re looking for a positive number. Any gain comes from:

  • Paying down the principal balance on your loan.
  • An increase in market value over time.

How does home equity work?

Building home equity is a bit like investing in a long-term instrument, like bonds. Your money is, for the most part, locked up and not spendable.

There are some ways to tap it, but wealth is created over years as your share of “free and clear” ownership of the house increases.

It seems simple enough, but home equity is not guaranteed. Just ask any homeowner who went through the last housing bust. That’s when home equity fell sharply for many homeowners — and, in some cases, completely disappeared.

As a rule, building home equity is a slow climb, at best. U.S. residential year-over-year home price appreciation averaged 1.89% from 1997 to 2017, adjusted for inflation, according to CoreLogic, the Bureau of Labor Statistics, and the Urban Institute.

However, behind that average are some major year-over-year price swings during the same period, ranging from a gain of 12.6% to a drop of 18.1%, according to the Urban Institute.

When it comes to short-term home appreciation, sometimes it’s more of a bungee jump than a climb.

How do you find out how much equity is in your home?

home equity calculator can give you an idea of what your home is worth and how much equity you may have, if you’re thinking about selling your home or borrowing a chunk of your equity.

An appraisal will really nail down the value of your house.

Why is home equity important?

Home equity can be a long-term strategy for building wealth.

Mortgage payments reduce what you owe while your home gains value, so paying on a house has been called “a forced savings account.”

This is unlike virtually every other asset purchased with a loan, such as vehicles, which lose value while you pay them off.

A growing number of U.S. homeowners are amassing “impressive stockpiles” of home equity wealth, according to Daren Blomquist, senior vice president at Attom Data Solutions.

At the end of the second quarter of 2017, over 14 million U.S. properties were considered “equity rich” — meaning the debt on the property was 50% or less of the home’s current market value.

That’s about 24% of all owner-occupied homes with a mortgage.

Home equity takes time to build

Another nutrient helping to grow home equity wealth is time. Homeowners who stay in their homes longer are more likely to accrue equity.

In the second quarter of 2017, people selling their homes had lived there an average of more than eight years. That was the longest ownership period since Attom began tracking homeownership tenure in 2000. Before the recession, people were staying in their homes an average of about four and a quarter years, Attom data show.

“That’s a paradigm shift — a more conservative approach to homeownership and building wealth through homeownership,” Blomquist says.

Just 10% of homes owned for less than one year are considered equity rich, according to ATTOM.

You don’t have to sell to tap the profit inside your home. Instead, you can borrow against that value with a home equity loan or line of credit. A home equity loan will provide you a lump sum; a HELOC allows you to draw on the available balance as you wish.

Home equity is not a get-rich-quick scheme

Building home equity is definitely a long-term proposition. Blomquist says wise words from one of his relatives may state it best.

“My wife’s great-grandfather — who bought property in Southern California a long time ago — his advice was, ‘You take care of a piece of real estate for 20 years, it’ll take care of you forever.’”

From our friends at Nerd Wallet


Not impressed with your kitchen or bathroom? Dream big with your space! Tackle your next home project with our Home Equity Special — rates as low as 5.21% APR*! Connect with our Loan Specialists today at 503-275-0300 Option 2 or apply online. We can’t wait to help make your dreams come true!

 

*Rate quoted valid for second lien loans only. Available in Oregon, Washington & Idaho. Minimum loan amount is $25,000. Maximum loan amount is $100,000. Maximum loan-to-value is 80%. Rate will vary depending on term, loan-to-value and credit qualifications. 10-year maximum term. Payments: On a $50,000 loan with a 120-month term at 4.99% interest rate (5.21% APR), your monthly payment would be approximately $531.21 or $10.64 per $1,000 financed. Payment approximation does not include taxes or insurance. Offer ends 5/31/2019

Fall Back in Love with your Home

Many of us reach a point where we begin to feel a little blah about our home, but moving is not always an option. Here are some tips on how you can get a “new” home without the moving truck.

Little changes can have a big impact
Painting walls, changing light fixtures and knobs, and adding curtains and plants can give your home a completely different look for only a few hundred dollars. Rearranging furniture, artwork, and knick-knacks can also freshen things up, and the only cost is a little time.

Expand
Converting an unfinished attic or basement can be a great way to get extra space at a fraction of the cost of building an addition. Adding a deck is another fairly simple way to increase your space. If you are hiring a contractor, be sure to get quotes from at least three and check their references.

Make the most of what you have
If expanding is not an option, you can still make your space seem bigger. Clean and throw away, donate, or sell anything you don’t need. If you have a little cash to spare, you can buy organizational tools, like shelves and hooks, and furniture that provides extra storage space, such as a coffee table or bed with drawers.

Need some extra funds to get started on one of the above projects?
Connect with a Loan Specialist and ask about our “Celebrate Summer” 12-12-12 Loan or if it’s a bigger project, a home equity could be an option – (800) 452-0915 option 2 | loans@usacu.org

Want more financial advice? As a benefit of belonging to USAgencies Credit Union, you have access to BALANCE, a free financial education and counseling service. Their certified counselors can answer your questions, review your credit report, and help you create a budget. Learn more about BALANCE.