Home equity loans are at an all-time low

Posted at 3:31 PM, Sep 17, 2020
and last updated 2020-09-17 17:31:26-04

Being at home because of the coronavirus pandemic, people might start noticing chips on their counter tops, or their floors.

MTN asked Don Bennett President of Freedom Bank in Columbia Falls if now is the right time to renovate your home.

"I think our economy is about to take off and be very strong. But at the very same time I could see it going the other way," said Bennett.

Don Bennett told MTN that despite the uncertainty in the economy, home equity loans are at a record low.

He explained to MTN that some are as low as three percent and some are even at a negative rate.

He has tips for those who want to take advantage of that.

"If somebody is looking to improve their home, now probably would be a good time to get a home equity loan," said Bennett. "Depending upon the amount of the loan and what their existing interest rate is on their current home. It might just make sense to re finance."

Bennett told MTN that while many people are foregoing vacations and saving on money, they maybe tempted to renovate their homes.

However, he explained to MTN that with the volatility of the economy he advises against that.

"Hunker down a little bit, safe a little bit extra," he said. "I'd put a few more groceries in the freezer."

He also recommended to MTN that this is a great time for people to pay off as much credit card debt as possible.

And he told MTN that renovating supplies right now are limited.

He attributes this to the high popularity of moving to Montana because of the pandemic.

"There is so much demand for housing, that the lumber stores don't have enough lumber," said Bennett. "They don't have OSB board or plywood."

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