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A Guide to Home Loans to Help With Emergency Repairs or Upgrades


Nobody ever likes having to repair a home, especially after a natural disaster. A home repair of any kind may have more than just a financial cost. It may carry an emotional toll as well. But, it's here where an old saying goes a long way: "home is where the heart is."

Your home will give back to you after the love and care you've put into it. Not only that, nobody says that a home repair has to be a simple replacement. You can use the equity in your home for an upgrade.

With home equity loan products, you can even think outside the box. If a pipe bursts, switch to a flexible PEX pipe made from a material better suited to expanding water. After a hurricane, you can root your fence line with posts that have a concrete base. You can better insulate exterior walls and add energy-efficient windows for the Texas inferno, otherwise known as summer. Or, maybe you want to add some flair with a whole new interior. The list goes on and on.

You can also use the equity in your home to pay your deductible for your insurance claim. Filing the insurance claim may have been a pain. Why not knock out your deductible with your home's equity and let your insurance money take care of everything else? This way, you'll pay by your terms. Then, you won't have to gut your savings, your kid's college fund or go into credit card debt.

Home equity loans and home equity lines of credit (HELOC) can make a big difference for homeowners. Years' worth of mortgage payments accumulates over time to get you closer to owning your home free and clear. That's the long-term perspective. In the short-term to mid-term, positive equity in your house can be a game-changer for disaster-related repairs and home upgrades.

As the names imply, these loans draw upon positive equity in your home. What does that mean? If your home's value is more than what you currently owe, you can draw upon the difference to remodel and repair it!

Home Equity Loans

A home equity loan in Texas helps recover from natural disasters, increase energy efficiency or make upgrades. One thing that might be confusing to some here is that you already have a mortgage on your home. You are already paying down a loan. Why would it help you to get a home equity loan?

It all comes down to the numbers. Let's say you have a house worth $200k. But, perhaps you only owe $100k. A home equity loan will let you borrow against the difference between those two numbers up to a specific limit. By Texas law, you can only borrow up to 80% of your home's equity. So, if your home's equity is $100k, and you can borrow up to 80%, that's $80k! That's not even the best part. With interest rates as low as they are today, you would end up with an affordable monthly loan payment.

So, maybe you spend part of that $80k on your repairs and leave the rest as liquid savings. But, home equity loans can serve many important life-expenses. You could consolidate debt, buy a new car or take a vacation. Or, you could borrow only as much as you need for the work on your home. Either way, you've pulled thousands of dollars, seemingly, out of thin air! 

Home equity loans with PrimeWay have low, competitive rates and flexible terms to get you the capital you need. Exploring this tool from PrimeWay is a great first step to getting your dream home remodel or that much-needed repair.

Home Equity Lines of Credit (HELOC)

A home equity line of credit in Texas can also help repair or upgrade your home against Houston's crazy weather. A HELOC is similar but different in some crucial ways. This product also utilizes positive equity in your home. But, because it is a line of credit, a HELOC works similarly to a credit card. You borrow from it as needed, up to the credit line limit. HELOCs have variable interest rates, and the monthly payment amount can vary. But, you only pay interest on the amount you draw from the line of credit. Also, unlike the home equity loan, a HELOC is subject to a draw period. This means that funds are not available as a lump sum like the home equity loan. Instead, they are available over a specified period of time.

Remember, the single-family home is in many respects one of the most significant wealth generators of all time. On average, the value of a single-family home will double every ten years. You've done it. You've put in the hard work to get here. Now ask what it can do for you.

Home equity lines of credit are available at PrimeWay! Learn more about this tool and see if it makes the most sense for you. PrimeWay experts are standing by to help.

A Guide to Home Loans to Help With Emergency Repairs or Upgrades

Our guide to home loans is just the thing to help with emergency home repairs or your home upgrade wish list. Let your home be your way forward.

Author Bio

Paul Browne

Paul is about everything digital marketing when he isn't galavanting as a pirate at the Texas Renaissance Festival, going to rattlesnake roundups or accidentally saying yes to Ironman triathlons.

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