for Repairs and Maintenance
Owning a home comes with many responsibilities, including keeping up the property. Time and weather can harm your home’s condition and routine maintenance tasks left undone could eventually turn into expensive repairs. In this blog, we will discuss the types of home maintenance you’ll need to tackle, as well as ways to fund any needed work so that both your house and your budget remain in good shape.
How To Prioritize Home Improvements and Maintenance?
As a homeowner, there are a few maintenance tasks that should be performed routinely to ensure your property remains in good, safe condition and prevent any issues from becoming major and costly problems later.
Roof, Foundation, Plumbing, Electrical and HVAC Essentials
Here is a priority list of things a homeowner should check regularly.
- Roof: Your home’s roof is exposed to all types of weather, which may include extreme heat, wind or cold. All of these affect how well your roofing protects the inside of your home. Have your roof inspected annually, especially after adverse weather, to ensure there’s no visible damage, such as missing or broken tiles and shingles that could cause water to leak into your home.
Additionally, regularly inspect your rain gutters and downspouts to ensure they aren’t clogged. Pooled water in a gutter could lead to dry rot, letting water seep down the side of your exterior walls.
- Foundation: Regularly inspect your home’s foundation, inside and out, to ensure there’s no damage. On the outside, check for any large cracks if it’s a concrete foundation or any dry rot, warping or separation if it’s wood. This is especially important in older homes where the ground could have settled over time, making the foundation uneven. Inside, ensure the flooring is level and check for any leaking pipes in the kitchen and bathrooms. If you suspect a problem, consult a professional for advice and repairs.
- Plumbing: Water leaks from your faucet, washing machine, refrigerator or dishwasher can have a devastating impact on your home’s integrity. A small leak can slowly create dry rot that may go unnoticed until it becomes a big problem. A large, sudden leak can flood your home, causing water damage to floors, walls and furniture. Leaks can also cause mold. Check these areas regularly.
- Electrical: Make it a practice to annually inspect your power outlets, as well as your electrical panel or breaker box. For outlets, ensure the plates are screwed in tightly. For your electrical panel, familiarize yourself with all the breaker switches so you’ll know how to shut down power to certain areas if needed. Also, be sure all light switches are working and check for any damaged or exposed cables coming from electrical appliances that could overheat and cause a fire.
- HVAC: Your heating, ventilation and air conditioning system plays a major role in your comfort in all types of weather. Ensure your system is inspected at least annually by a professional to keep it maintained properly. Replacing a system is very expensive, but with regular maintenance, a system could last a decade or longer. A related task is to change the filters on your home’s air ducts every three to six months to ensure proper air flow and the maximum ability to capture dust and odors.
Keeping your home in good shape means a safe and comfortable place to live. Routine inspections ensure that any problems are discovered early. Having funds already set aside for home maintenance and improvements lets you quickly tackle any issues before they become too expensive.
Building a Checklist and Setting Savings Goals for Home Maintenance
As a homeowner, having a fund set aside for home repairs is a smart move. To determine how much you may need to save, start with a checklist of all the maintenance tasks that are needed and their costs. According to Nerdwallet, American homeowners spent an average of $5,000 on home repairs in 2023. Other experts suggest a home maintenance fund of between 1% and 4% of the home’s value — or roughly $7,000 to $18,000 for an average California home.
Home Equity Loans, HELOCs, Energy-Efficient Loans and Cash-Out Refinancing
If you’re facing a major home repair and don’t have all the funds saved to pay for it, don’t fret. Unexpected expenses do occur, and as a homeowner there is good news: you have options. You can finance a repair or project with a home equity loan, line of credit, energy-efficient loan or even a cash-out refinancing.
- Equity Lending: Homeowners can borrow money from the existing equity in their home without the need to refinance their current mortgage. There are two types of home equity lending products they can use: a home equity loan or a home equity line of credit (HELOC).
Home equity loans let you borrow a lump sum of money that you must pay back monthly with a set term and interest rate. The amount you can borrow will be determined by the available equity in your home and your lender’s requirements.
A HELOC is a line of credit from which you can draw as needed. The draw period is 10 years, during which time you can make interest-only monthly payments. After 10 years, any existing balance is converted to a repayment period, usually a 15-year loan with a set monthly payment that reflects principal and interest.
Both types of equity loans put a lien on your property to ensure the lender is paid back. If the home is to be sold before the loan is repaid, the borrower will need to pay off the equity loan first before the home can be transferred to the new owner.
- Energy Efficient Loans: These are unsecured loans meant for homeowners who want to buy energy-efficient appliances, solar panels and other products. They do not require equity or putting a lien on your home. Instead, most lenders will require proof of a purchase agreement for the appliances or a contractor agreement for a solar panel system installation. Travis Credit Union’s Eco-Friendly Loan can help you buy energy-efficient appliances that help you save on your electric bill.
- Mortgage Refinance with Cash Out: Another option to pay for home repairs is to refinance your existing mortgage and take cash out based on the amount of equity available. With a mortgage refinance, you’ll get a new loan with a new interest rate and monthly payment. It’s important to note that this will raise your current monthly payment because of the increase in your loan balance. But you’ll have available cash on hand to pay for your repair projects without having a second lien on your property like you would with a home equity loan. Check with your current lender first if a cash-out refinance is available.
Borrowing for home repairs is a practical solution for homeowners. Be sure to check with your current mortgage lender first and then shop around for the best interest rates.
How Can TCU Help You?
Travis Credit Union is focused on your financial wellness. If you’re a current homeowner who is looking to save money in a home maintenance fund or want to explore financing for a home repair project or another expense, we can help. TCU offers home equity loans, energy-efficient loans, personal loans and more. We do mortgage refinances, too. Get started today at traviscu.org.
Frequently Asked Questions
Why is regular home maintenance important for homeowners?
Regular maintenance helps prevent small issues from turning into costly repairs and keeps your home safe and comfortable. It also protects your property’s long-term value.
What areas of a home require the most frequent inspection?
Key areas include the roof, foundation, plumbing, electrical system and HVAC. Monitoring these regularly helps catch problems early.
How often should homeowners inspect their roofs and gutters?
You should inspect your roof at least once a year and after severe weather events. Gutters should also be checked regularly to prevent clogs and water damage.
How much should homeowners' budget for home maintenance?
Experts suggest setting aside 1% to 4% of your home value annually. This can range from about $7,000 to $18,000 for a typical California home.
What are common financing options for major home repairs?
Homeowners can use home equity loans, HELOCs, energy-efficient loans or cash-out refinancing. Each option offers different repayment structures and requirements.
What is the difference between a home equity loan and a HELOC?
A home equity loan provides a lump sum with fixed payments while a HELOC lets you borrow as needed over time. HELOCs typically have a draw period followed by a repayment period.
How can homeowners prepare financially for unexpected repairs?
Creating a maintenance checklist and setting savings goals can help build a repair fund. Planning ahead ensures you can handle unexpected expenses without financial strain.