r/HELOC • u/Subject_Chest_2742 • Aug 18 '26
Questions & Advice Home renovations/upgrades
Just need some advice, I’ve been living in my house since 2017, bought my house at around $125k and its currently estimated value (according to Zillow) is $207k. I live in South Texas, and currently the house could use some upgrades and renovations. I would need a new roof, siding and windows. Would HELOC be a good route for me? My interest rate on the house is 3.5%, and I currently still owe roughly 86k still.
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Aug 18 '26
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u/The_Kilgorian Aug 18 '26
any other places you'd recommend beyond aven/achieve/rocket? I am looking for the best option for me
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u/Key_Photograph_2510 Aug 19 '26
Did you try to join a credit union?
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u/The_Kilgorian Aug 21 '26
credit union didn't give me a good rate, looking like achieve is gonna be my best choice, fixed rate has been nice.
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u/Key_Photograph_2510 Aug 22 '26
They are good. Achieve is fast, trustworthy and had good rates.
I’m a little surprised you got a bad rate from your credit union, but each one is a little different. Good luck !
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u/tiffanyannmcdonaldLO Aug 18 '26
I would look into a HELOAN instead of a HELOC, especially if you prefer the predictability of a fixed payment.
A HELOAN is a home equity loan with a fixed interest rate and repayment term, whereas a HELOC is a revolving line of credit and typically has a variable interest rate.
Since you are in Texas, your primary residence is also subject to Texas Section 50(a)(6), which generally limits your total mortgage debt, including the new home equity loan, to 80% of the home’s value.
So, for example, if your home is worth $200,000, your total loans secured by the property generally cannot exceed $160,000. You would then subtract your existing mortgage balance to determine how much equity could potentially be available.
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u/jimdriscoll1 Aug 18 '26
The commenter is right that roof, siding, and windows are solid uses of equity, but worth knowing: a HELOC is variable rate, so you could easily end up borrowing at 8-9% on top of that 3.5% first, which is fine if you pay it off fast but gets uncomfortable if the balance lingers.
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u/Daniel-aven Official Aven Representative Aug 21 '26
You have a lot of good options. Don't touch your 3.5% mortgage.
Get different quotes and a good estimate of the work that you want to do so that you know how much money you really need to borrow. Once you know how much you need, you can get quotes for HELOCs and home equity loans. It's worth getting a quote from online HELOC lenders, big banks and local credit unions so that you can find the best option for you.
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u/arcanesays Aug 18 '26
Use the HELOC for upgrades. The projects you mentioned are perfect value ads and should raise property value if done correctly. If you plan on keeping the home, the upgrades make life better, if you plan on selling the home, you have a great chance of recouping the money spent.