Tag Archives: home

The Power of Home Equity: A Guide to Leveraging Your Home’s Value

As a homeowner, you’ve likely heard of home equity, but do you know how it works and how you can tap into it? At Peoples Bank & Trust (PBTC), we’re here to simplify home equity and provide you with a comprehensive guide on how to unlock its potential.

What is Home Equity?

Home equity is the difference between the market value of your home and the outstanding balance on your mortgage. It’s the amount of ownership you have in your home, and it can be a valuable asset for homeowners.

How Does Home Equity Work?

Here’s an example to illustrate how home equity works:

Let’s say you purchased a home for $200,000 with a 20% down payment ($40,000) and a mortgage of $160,000. Over time, the value of your home increases to $250,000. You’ve paid down your mortgage to $120,000. In this scenario, your home equity would be:

$250,000 (current market value) – $120,000 (outstanding mortgage balance) = $130,000 (home equity)

Suggested Renovations Based on Era of Your Home

The era of your home can greatly impact the types of renovations that will increase its value and appeal. Here are some suggested renovations based on the era of your home:

Pre-1940s Homes

Update electrical and plumbing systems to modern standards
Insulate walls and ceilings to improve energy efficiency
Replace original windows with energy-efficient, historically accurate replicas
Refinish or replace hardwood floors
Add modern amenities like central air conditioning and heating systems
Refinish unique details of the home. Here are some ideas for doing so: 11 Ways to Update an Old House Without Erasing Its Character

1940s-1960s Homes

Update kitchens and bathrooms with modern fixtures and appliances
Add insulation to attics and walls to improve energy efficiency
Replace single-pane windows with energy-efficient, double-pane models
Install new flooring, such as hardwood or tile, to replace outdated materials
Add outdoor living spaces, like patios or decks, visible from the street to increase curb appeal

1970s-1980s Homes

Update kitchens and bathrooms with modern fixtures and appliances
Add energy-efficient features, like solar panels or skylights
Replace carpeting with hardwood or tile flooring
Install new windows and sliding glass doors to improve natural light and views
Add modern amenities, like smart home technology and high-speed internet connectivity

1990s-Present Homes

Update kitchens and bathrooms with modern fixtures and appliances
Add energy-efficient features, like LED lighting and smart thermostats
Install new flooring, like hardwood or luxury vinyl tile, to replace outdated materials
Upgrade outdoor living spaces, like patios or decks, with modern materials and features
Add modern amenities, like smart home technology. Check out the latest tech for 2025: The Best Smart Home Devices for 2025 | PCMag

Peoples Bank & Trust’s Equity Solutions for Your Next Project

Now that you understand how home equity works, you may be wondering how to tap into it. Here are a few options:

Home Equity Loan: A lump-sum loan that allows you to borrow a portion of your home equity at a fixed interest rate.
- We offer a close-ended loan, meaning you get the full sum of the loan up front to use!
Home Equity Line of Credit (HELOC): A revolving line of credit that allows you to borrow and repay funds as needed.
- Your limit is established up front, and you can draw on the line of credit when you need it!

Home equity is a valuable asset that can help you achieve your financial goals. By understanding how it works and how to tap into it, you can unlock the power of your home’s value. Whether you’re looking to renovate your home, consolidate debt, or fund a major expense, home equity can be a valuable resource. At PBTC, we’re here to help you navigate the world of home equity and make the most of your home’s value.

Not sure where to begin? Reach out with your questions, our experienced lending team is help you along you and your home’s journey!

Peoples Bank & Trust Co.
Member FDIC, Equal Housing Lender
NMLS #407724

Buying a Home in 2025: What You Need to Know

Are you thinking of buying a house in 2025? Congratulations on taking the first step towards your dream of homeownership! At Peoples Bank & Trust, we’re here to guide you through the process with valuable insights and expert advice to make your home-buying journey smooth and successful.

Where to Begin

Check Your Credit Score

Your credit score plays a significant role in determining the interest rate you’ll qualify for and whether you’ll be approved for a mortgage. A good credit score can help you secure a better loan deal, so make sure to check your credit report and work on improving it if necessary. Here are some steps to improve your credit score:

Pay your bills on time: Late payments can significantly impact your credit score.
Reduce your debt: Aim to pay down credit card balances and other debts.
Avoid opening new credit accounts: Each new account can lower your average account age, which can negatively affect your score.
Dispute any errors: Check your credit report for inaccuracies and dispute any errors you find.

Determine Your Budget

Calculate how much you can afford to spend on a house, including your down payment, closing costs, and ongoing expenses like mortgage payments, property taxes, and insurance. Aim to save at least 20% of the home’s purchase price to avoid private mortgage insurance (PMI) and secure better loan terms. Here’s how to create a comprehensive budget:

Assess your current financial situation: Review your income, savings, and any existing debts.
Estimate your monthly expenses: Include utilities, groceries, transportation, and other regular costs.
Factor in homeownership costs: Consider property taxes, homeowners insurance, maintenance, and repairs.
Plan for the future: Think about potential changes in your financial situation, such as job changes or family growth.

Research Mortgage Options

Explore different types of mortgages, such as fixed-rate and adjustable-rate loans, and learn about the pros and cons of each. Peoples Bank & Trust offers a range of mortgage options to suit your needs. Here’s a brief overview of common mortgage types:

Fixed-Rate Mortgages: These loans have a consistent interest rate and monthly payment throughout the loan term, making them predictable and stable.
Adjustable-Rate Mortgages (ARMs): These loans have an interest rate that can change periodically based on market conditions, which can result in lower initial payments but higher risk over time.
FHA Loans: These government-backed loans are designed for first-time homebuyers and those with lower credit scores, offering lower down payment requirements.
VA Loans: Available to veterans and active-duty service members, these loans offer competitive interest rates and no down payment requirements.
Jumbo Loans: These loans are for higher-priced homes that exceed the conforming loan limits set by Fannie Mae and Freddie Mac.

What Buyers Need to Prepare and Get Ready For

Home Inspections

A home inspection can reveal potential issues with the property, giving you an opportunity to negotiate the price or back out of the deal if necessary. Here’s what to expect during a home inspection:

Structural components: The inspector will check the foundation, roof, walls, and other structural elements.
Systems and appliances: The inspection will cover the HVAC system, plumbing, electrical systems, and major appliances.
Interior and exterior: The inspector will examine the interior and exterior of the home, including windows, doors, and insulation.
Report and recommendations: After the inspection, you’ll receive a detailed report outlining any issues and recommended repairs.

Appraisals

An appraisal determines the value of the property, ensuring that you’re not overpaying for the house. Here’s why appraisals are important:

Loan approval: Lenders require an appraisal to ensure the loan amount is appropriate for the property’s value.
Negotiation tool: If the appraisal comes in lower than the purchase price, you may be able to negotiate a lower price with the seller.
Investment protection: An accurate appraisal helps protect your investment by ensuring you’re paying a fair price.

Title Search and Insurance

A title search ensures that the seller has the right to sell the property, and title insurance protects you from any potential ownership disputes. Here’s what you need to know:

Title search: This process involves reviewing public records to verify the property’s ownership history and identify any liens or encumbrances.
Title insurance: This insurance protects you and your lender from financial loss due to title defects, such as undisclosed heirs, forgery, or errors in public records.

Tips for First-Time Homebuyers

Don’t Rush

Take your time to find the right property, and don’t feel pressured to make an offer on a house that’s not perfect for you. Here are some tips for a thorough home search:

Define your needs and wants: Make a list of must-have features and nice-to-have amenities.
Research neighborhoods: Consider factors such as proximity to work, schools, amenities, and overall safety.
Visit multiple properties: Compare different homes to find the best fit for your needs and budget.

Work with a Real Estate Agent

A real estate agent can guide you through the home-buying process, providing valuable insights and expertise. Here’s how an agent can help:

Market knowledge: Agents have access to the latest market data and can help you find properties that meet your criteria.
Negotiation skills: An experienced agent can negotiate on your behalf to get the best deal.
Paperwork and legalities: Agents handle the complex paperwork and ensure all legal requirements are met.

Consider Additional Costs

In addition to your mortgage payments, factor in ongoing expenses like maintenance, repairs, and property taxes. Here’s what to budget for:

Routine maintenance: Regular upkeep, such as lawn care, cleaning, and minor repairs.
Major repairs: Unexpected issues, such as roof replacement or plumbing repairs.
Property taxes: Annual taxes based on the assessed value of your home.
Homeowners insurance: Coverage for potential damages and liability.

Partner Up with Peoples Bank & Trust

Buying a house in 2025 requires careful planning, preparation, and research. By following these tips and working with Peoples Bank & Trust, you’ll be well on your way to achieving your dream of homeownership.

Our Mortgage Solutions

Peoples Bank & Trust offers a range of mortgages to suit your needs, including fixed-rate and adjustable-rate mortgages. Our mortgage specialists can help you choose the best option based on your financial situation and long-term goals.

Click here to learn more!

How to Save for A House Down Payment

down payment

If you’re looking to buy a house, having a larger down payment will offer you a lot less financial stress in the long run. However, in order to put a larger sum of money down, you will need to take the right steps to save. Follow these 5 steps and you will be on your way to being a first-time home owner!

Step 1: Figure out how much you will need to save – If possible, secure a number or range on the amount you can responsibly spend on a house. You can plan to sit down with a mortgage lender or use a home buying calculator to help figure out how much you can afford. With the use of a calculator, be sure to remember that it will not take in account every aspect of your financials.

Step 2: Find the best ways to save – After you know an estimated range of how much you need to save, the next step is to figure out what expenses you can cut down – maybe skip vacations for year. The money you would spend on vacation can make a huge contribution toward a down payment. Next, take a look at your monthly expenses and see what you can reduce or eliminate; put that extra money into a down payment savings account. Lastly, work more. This may be easier said than done, but when there is opportunity to work an extra shift or add on hours, do it. Working more will be worth it when you are able to find your dream home!

Step 3: Transfer a fixed amount into a savings account each month – In addition to saving that extra money, set up a savings account specific for your house down payment. Then, with each paycheck you receive, have a certain amount automatically taken out each time and deposited into that savings account. That way it will remove any temptation to spend the money on other purchases. Before you know it, you will have enough money for a down payment.

Step 4: Leave room for flexibility in your savings – With all of this saving, it is equally important to leave room for flexibility. There will be other demands on your finances such as: car repairs, uncovered medical expenses or even loss of a job. You will need to be ready when and if these happen to occur – it is also helpful to create an emergency fund!

Step 5: Reduce your high interest rate debt – If you have high interest rates on your credit cards, it can painfully limit your ability to save. For this last step, do yourself a favor and pay off those high interest credit cards. Begin with your highest card and once that is paid off, close it and proceed to the next card. Lastly, transfer your credit card balances to the card with the lowest interest rate.

The process of buying a house can be very long and probably will require a big hunk of your savings. However, creating a larger sum for your down payment will sure be rewarding when you become a first-time home owner! Follow these 5 steps, and we can ensure much less stress in the long run.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Choosing Your Ideal Mortgage Lending

Mortgage Lending

Mortgage Options

Winter is the ideal buyers-market for purchasing your next home. With motivated sellers, bargain prices, and available professionals, the chilly months offer the perfect opportunity to find your ideal home at an ideal price. When it comes to searching for your next abode be sure to begin by securing an approved mortgage. At Peoples Bank & Trust we offer a variety of mortgage options to suit every family and circumstance:

FHA Loans: Popular among first time homeowners and those rebuilding credit, the Federal Housing Administration backed loan, enables buyers to obtain a mortgage with little down, even if they have a lower credit score. Mortgage insurance is required for FHA loans, which adds an additional monthly cost that is included in your mortgage payments.

USDA Loans: For those looking to move to rural areas, the United States Department of Agriculture offers loans to aid low or moderate income families in buying, repairing, and renovating homes. There are three categories of loans for various incomes and buying intentions.

VA Loans: For those who have served in the military, or are currently serving, Veteran Affairs offers home loans in conjunction with local lenders. This loan requires no money down or mortgage insurance.

Once you’ve spoken with one our helpful lenders, the hunt is on for the perfect home! Be sure to keep these simple steps in determining the ideal home for you and your family.

Look at homes only within your budget.
Decide your ideal area, and your potential commute.
Plan for the future, if your family is growing, additional bedrooms may a something to consider.
Think for the seasons. Make sure that if Mother Nature throws some bad weather your way the house will remain safe and stable.
Work with a realtor who knows the area.
If you have questions, ask! Whether it’s about searching for your home, or extending your financing, make sure you’re educated in all of the options in front of you.

At Peoples Bank & Trust we are here to assist you with all of your home financing needs. Learn more about our mortgage lending options or visit your local bank branch. No matter the season, we’re here to help you on your way to home ownership.