Winter Projects, Warm Home: How to Use Your Home’s Equity Without the Guesswork Alternates

When it’s cold out, the to-do list inside gets longer. The basement that needs finishing. The kitchen you’ve been dreaming about. The furnace that’s making that noise. Winter is a good time to tackle projects, and a lot of Lincoln homeowners wonder how to pay for them.

If you own your home, you may have an option you haven’t considered: your home’s equity.

What is home equity?
It’s the difference between what your home is worth and what you still owe on it. As you pay down your mortgage and your home’s value changes, your equity can grow. Home equity loans and HELOCs let you borrow against it.

What’s the difference between a HELOC and a fixed home equity loan?
Think of it this way:

• Fixed home equity loan: You get a lump sum up front and pay it back in set monthly payments. Good when you know exactly what the project will cost.
• HELOC (home equity line of credit): You get a credit line and draw from it as you need it. Good when costs are spread out or hard to predict.

Which one is better for my winter project?
If you’re replacing a furnace or finishing a basement and have a firm quote, a fixed loan keeps things simple. If you’re tackling a remodel in stages, or you’re not sure what you’ll find behind the drywall, a HELOC gives you room to adjust.

How does a HELOC work over time?
You have a five-year draw period when you can borrow, repay, and borrow again. After that, the line closes, and you move into a 5-year repayment period. If you want a new line afterward, you’d need to reapply.

How long does it take, and what does it cost to set up?
Most close in about 2 to 4 weeks. Closing costs vary, and we’ll give you an itemized Loan Estimate up front. We don’t charge annual fees, early termination fees, or prepayment penalties.

One honest note
Your home is the collateral for both options, so borrow only what you’re comfortable repaying alongside your mortgage.

Beyond projects: Some homeowners also use equity for debt consolidation, education costs, or emergencies.

Your Home Equity and HELOC questions, answered

• Is a HELOC or a home equity loan better for a home renovation? Depends on whether your costs are fixed or spread out.
• Can I pay off a home equity loan early? Yes, with no prepayment penalty at LincOne.
• How much can I borrow? Use our home equity calculator to estimate.

Crunch your numbers with the equity calculator, then apply or book time with an advisor.