Money TALKS

Ready to invest in your home but wary of rising interest rates? These two lending pros have tips about how to make the most of your investment.

BY ETTIE BERNEKING

Have Options Besides Refinancing

1. YOU

Only 17% of applications we see are for renancing. With interest rates going up, we’re seeing fewer people re nance because they would lose the low interest rate they locked in.—Steve King, director of retail lending at Great Southern Bank

2. ASK ABOUT A HELOC VS HELOAN HELOCs—home equity lines of credit—can give you a lifeline if you have a sudden repair or want to remodel, but the interest rates are variable. If you use the funds right away, it might be worth moving your HELOC to a HELOAN—an installment loan secured by your home, and interest rates are xed.—Hannah McCaig, mortgage sales manager at BluCurrent

3. IS THE REMODEL WORTH IT?

Not every renovation has the same return. If I put new windows in, the next person who buys the home is still getting windows, so that might not increase your home’s value. Now, if you go in and remodel your kitchen, you’re going to get a higher return on that investment.—S.K.

4. DON’T OVER-INVEST

Make sure that you’re in an equity position that makes sense. I don’t personally think home values are going to crash, but they could dip. So if your home is worth $300,000 today, it could be $290,000 next year just because home values jumped so much in the past few years.—S.K.

5. SHOP AROUND FOR RATES

Every nancial institution can have a di erent rate, so shop around. If you want customer support, ask your lender how you can reach them. Also ask how much they charge for lender fees, do they charge any points and do they have any at fees for third-party vendors such as appraisal or title work?—H.M.