Most homeowners don’t have to pinch pennies to replace the faucet in the kitchen, but replacing the whole kitchen can run up quite the bill. Finding the money to fund renovations around your home is something you’ll want to study up on before you dive into the process.
There are plenty of options available for people looking to fix up their home, but you have to know where to look to find the best deal possible. Take a few minutes now to read over some helpful tips for financing your home renovations, and move forward with confidence.
Play the long game
The safest option is to play the long game, and save the money you need to complete the home renovations on your projects list. This method doesn’t get things done in a hurry, though, and it’s not the best option for renovations that need to be completed quickly.
However, you could start a high interest savings account for the funding of your renovations, and make a little bit of money along the way. If you need a smaller job done like working a new laundry room layout, this method may be suitable. You’ll also avoid going into any sort of debt if you take the time to save the cash for the job.
Home improvement loan
You could find a bank or lending service to fund a home improvement loan. If you have decent credit, grabbing up a home improvement loan shouldn’t be too big a feat.
Once you know a ballpark figure on what you need to get the job done, petition your bank for an offer. If your credit could use a boost before you try for financing, try working with an app like Credit Karma to find faster ways to improve your scores.
Home equity loan
Home equity loans come with a fixed interest rate, so you keep the terms you sign for in the beginning. If you need a lump sum of money to complete a big job, then a home equity loan might be a good route.
It’s important that you understand the terms though. If you can’t keep up with the extra payments each month, you could lose your home. Your home is the collateral in the situation, so make certain your financially healthy enough to maintain the payments.
Home Equity Line Of Credit
Taking out a Home Equity Line of Credit is just that; it’s a line of credit on the equity you have in your home. Once you have a HELOC, it works similar to the way a credit card works.
The big difference is that your home is the collateral if you can’t pay the bill. Just like a home equity loan, you’ll need to make sure you’re financially comfortable enough to maintain this method, so you don’t get yourself into hot water.