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Financing your Remodel using an MSUFCU SmartLine℠ Home Equity Loan

April 25th, 2023 | 4 min read

By Michael Flory

Trex composite deck at dusk with lighting features.

Are you planning a home remodel but are concerned that you’ll have to draw from your savings to pay for it? Many homeowners feel the same way, not realizing that using the value of your home to acquire financing is easy and affordable.

We're here to help you understand how you can use a home equity loan from the Michigan State University Federal Credit Union (MSUFCU) to pay for your remodeling project.

Custom Built provides a structured financing process using an MSUFCU home equity loan. As an MSUFCU-preferred builder, we have helped many homeowners like you remodel their homes using the most effective financing options available.

In this article, you’ll learn about MSUFCU’s home equity loan, as well as the steps you’ll need to take to get approved for your loan.

What is an MSUFCU SmartLine℠ home equity loan?

SmartLine℠ is MSUFCU’s home equity loan. It operates similarly to a standard home equity loan where the value of your home is used to determine the loan as to secure the loan.

There is one main difference between a standard home equity loan and the SmartLine℠ home equity loan:  The SmartLine℠  loan allows you to pull segments from your total loan amount and only be charged interest on what you borrow from your loan.

This is a major benefit if you are making a purchase, such as a home remodel, and know the total amount you plan on spending.

You can withdraw only what you need, and pay interest on that amount. The rest of the loan is paid back with zero interest.

With interest rates as low as 7.5%, the SmartLine℠  home equity loan is an affordable and viable option to pay for your home remodel.

How to finance your remodel using an MSUFCU SmartLine℠ home equity loan

1. Get pricing for your project

You’ll receive a proposed conceptual range for your project at your showroom consultation meeting. By this time, we will have visited your home to gather on-site measurements and details about your project, which are used to determine this range accurately. 

This proposal will inform you of the final price range your project will fall within before going through the design and product selection process.

Knowing the proposed conceptual range for your project will tell you how much to pull from the home equity loan as a segment. You’ll only have to pay interest on this amount, saving you money in the long run.

As long as your project’s scope and size remain the same, your final price will be within the proposed range. Additionally, our team of experts will advise you through the design phase to keep your project within your budget range.

2. Become an MSUFCU member

MSUFCU’s SmartLine℠ home equity loan is only available to MSUFCU members. If you’re not currently a member, it’s easy to become one.

3. Apply for your loan and create a segment using the proposed conceptual range 

Now that you’re a member of MSUFCU and have received the proposed conceptual range for your project, you have all the information you need to apply for your loan and withdraw an accurate segment amount.

You can apply on the MSUFCU website, through their mobile app, by phone, or at any MSUFCU branch location. 

If you have questions, you can contact the Mortgage Department directly at 517-333-2424, option 3.

4. Understand your APR and loan repayment term length

The interest rate for your segment is determined when your segment is created. 

Your credit score as well as your desired repayment schedule are used to set up the annual percentage rate (APR) for the amount you borrow.

Rates start as low as 7.5% and with segment repayment lengths ranging between 12 - 180 months.

5. Begin designing your project

With your loan secured, we will begin working with you to design your project. Your final price is determined by specific product selections chosen during your design process.

We will keep in mind your approved loan amount as we design your project to make sure you don’t need to increase the amount you borrow.

Next steps for financing your remodel with an MSUFCU SmartLine℠ home equity loan

Don't let the expense of updating your home keep you from moving forward with the remodel you’ve dreamt of. With the help of MSUFCU and Custom Built, you can affordably finance your dream remodel.

If you have questions, contact the MSUFCU Mortgage Department directly at 517-333-2424, option 3. You can also speak with one of our project development advisors to get an accurate quote and to learn if Custom Built is the right designer and builder for you.

Want to learn about the costs and financing associated with home remodeling? Read the following articles:

*The information provided in this article is for informational purposes only and should not be considered official financial advice. It's always best to consult with a financial advisor or professional before making any financial decisions.*

One SmartLine Home Equity Loan per household. Eligible properties include primary residences; owner-occupied second homes; condos; modular and manufactured homes; and one- to four-unit buildings with owner occupancy in one of the units. Properties must be located within Michigan. Consult with a reliable tax advisor about the deductibility of home equity loan interest. The closing cost of $199 plus the property valuation fee, if required. You may only lock a segment of your loan during your draw period. There is no fee for the first segment; however, you will be charged a $25 fee for each subsequent segment. A fee of $25 will apply to requests to unlock a segment. Balances on segments reduce the availability of the line of credit. Your locked segment fixed interest rate will be determined based on your creditworthiness at the time your fixed-rate segment is approved. Actual APR will be determined by the member's credit score at the time of the loan request. Rate subject to change. This product has a variable rate that is based on the market rate (prime plus margin). Your margin will be between 2.00% APR and 7.00% APR. Your overall rate (prime plus margin) will never fall below 2.00% APR, nor will it exceed 18.00% APR.

Michael Flory

Michael brings over 2 decades of building and remodeling experience to his position as the Owner and Visionary of Custom Built. Michael’s passion to make an impact on the home building industry has led him to serve for over ten years at the local and state Home Builders Association, culminating as President of the HBA of Michigan in 2020.