My basement floods during heavy rain, with water sometimes reaching up to three inches. A contractor has estimated that proper repairs, including drainage and waterproofing, will cost between $15,000 and $20,000. Since I live in a state that's now considered subtropical, I'm worried the flooding will get worse over time.
I've looked into getting a Home Equity Line of Credit (HELOC) from Achieve, which has a fixed rate of 6.99% APR for 15 years, resulting in a monthly payment of about $180. This seems like a reasonable option compared to what I've seen elsewhere.
The contractor suggested I might need a variety of work done: exterior waterproofing, interior drainage, a sump pump, sealing wall cracks, and even mold remediation and floor repair. Given the scope of these issues, I'm wondering if using a HELOC is a good idea for financing this repair or if I should consider other options. Also, should I follow all the contractor's recommendations or skip any parts?
4 Answers
Deciding whether to go for a HELOC really hinges on your personal finances, so it might be wise to consult with a financial advisor. They can help you weigh your options and determine if it's suitable for your situation.
Just a heads up: a Home Improvement loan gives you a one-time payout while a HELOC functions as a line of credit. The loan might have lower rates, but 6.99% isn't too shabby for a HELOC. I recently got a 10k loan to shore up a basement wall, so I can relate!
Considering your basement's flooding situation, getting all the recommended work done doesn’t seem excessive. If you can't pay for it outright, a HELOC sounds like a solid long-term financial choice. Plus, if it's used specifically for home repairs, the interest might even be tax-deductible!
It sounds like you're on the right track! If water is coming in through the walls as you described and your contractor has outlined a detailed plan, it might be best to tackle everything at once instead of piecemeal repairs. A HELOC can really help fund those essential repairs, especially since you're working with a professional who can get it done right.