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Quiz: Savings or Home Equity Line of Credit? ? Carthage Savings & Loan


Quiz] Should You Use Savings or A Home Equity Line of Credit?

No matter how new your home is or how much you love it, repairs and the need for upgrades are inevitable. When it’s time to make a change, many homeowners wonder if they should use their savings or look into financing like that provided by a home equity line of credit (HELOC). There are benefits to each option, but which is right for you?

Take this quiz from Carthage Savings & Loan to see which option makes the most sense for your financial situation, and visit your nearest branch for more information.

  1. What kind of improvements will you make?
    1. Essential updates, like replacing a roof or renovating a fixer-upper
    2. Fun upgrades, like building a deck or finishing a basement
    3. A mix of both
  2. Which statement best describes your current savings?
    1. I need to save more and would be upset to see my savings account balance go down
    2. I have ample savings and feel confident that I’m well-prepared for emergencies and unexpected expenses
    3. I have some savings, but I’m not confident that they’re sufficient for home improvements and future needs
  3. How large is the home improvement project you’re planning?
    1. It’s extensive – I’ll need to complete multiple projects of different sizes over time
    2. It’s fairly small OR I could pay for it without disrupting my current finances
    3. I’m not sure – I’m still making plans and setting a budget


  4. How much debt do you have today?
    1. Little or no debt – I am in a good place to take on a new monthly payment
    2. Some or a lot of debt – it would be better not to take on a new monthly payment
    3. I’m not certain about my credit and need to speak to someone about my options
  5. How much equity is currently in your home?
    1. A substantial amount – I’ve paid at least half of the principle on my mortgage
    2. Some – my mortgage is fairly new and I’m mostly paying interest
    3. I’m not sure OR I have concerns about using home equity to finance repairs and remodeling

Check Your Answers

If you chose mostly As, you’re a great candidate for a HELOC. These lines of credit are ideal for homeowners with plenty of equity in their homes who need to complete long-term projects that demand a flexible cash flow over time. Just be sure to manage the money responsibly, as you’ll need to pay back any funds you use. Learn more about our HELOC options, and contact your nearest branch to speak with a loan officer about how to get started.

If you chose mostly Bs, using savings may be a better option. Maybe your home upgrades are wants rather than needs, or perhaps you simply don’t have enough equity in your home. Either way, it may not be the right time to borrow against your equity. Instead, use existing savings, or contact Carthage Savings & Loan to set up a savings account and learn more about budgeting for home improvements.

If you chose mostly Cs, you should contact Carthage Savings & Loan before making any decisions about home improvements. You could be a good candidate for a HELOC, but a review of your finances may reveal that savings are a better option. Alternatively, if you require a lump sum of money for a single project, a home improvement loan could help.

Get the Financing You Need Today

If you have questions about funding home repairs, Carthage Savings & Loan can offer the guidance you need to make your remodel a success. Call 800-232-0450 today to speak with a representative, or visit us in Carthage, Clayton, Watertown, or Croghan to get started. With friendly service and local decision-making, we’ll support you through every step of the process.

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