Every homeowner would want to improve their home if given a chance. It’s not just about the regular maintenance and repairs, but a few projects that will add value and appeal to your home. If only it’s that easy to finance your dream home improvement projects, right? Turns out, now you can!
Many financing options are now available for homeowners who wish to improve their home. To get started, here are five financing alternatives to consider.
Not everyone has a considerable amount of extra cash sitting on their bank account. While saving takes time, patience, and dedication, homeowners will find this an easier option. You’ll get to budget your projects and stay within your range. You don’t need to pay for interest fees as you’ll be using the money you saved up for the home improvement projects.
A majority of the population owns at least one credit card. If you plan to tackle minor home improvement projects, then your good old credit card can help you cover the costs. There’s no need to apply if you already have one, and you can even collect points that you can utilize in the future. The downside of using your CC for home improvements is that they usually come with higher interest fees. However, if you’re sure you can pay off your credit provider comfortably, your CC could be the financing option for you.
Home Equity Loan
Homeowners can use their home’s equity to fund home renovation projects. If you have enough home equity, you can tap on it by applying for a home equity loan, and you’ll receive a lump sum after. Financing home improvement projects with a home equity loan one of the best ways to use your home equity funds. You have between 15-30 years to repay your mortgage lender, giving you enough time to pay back the loan.
Also Read: How Do I Calculate How Much Home Equity I Have?
Home Equity Line Of Credit
If you purchased with FHA Loans Laredo, you can apply for a HELOC and use the funds for home improvement projects. You have the choice to borrow up to 80% of your equity. Your lender will deposit the money in your account, and you can withdraw a specific amount every time you need the funds. However, you only have 15 years to pay back the loan. With the shorter payment term, you’ll also pay higher monthly fees.
Personal loans can be your go-to home improvement financing choice if you’re after an easier application and smaller loan amount. You won’t also need collateral to qualify for the loan. This is perfect for homeowners who don’t have enough equity in their home. The disadvantage of using a personal loan is that it usually takes 5 to seven years to pay and higher interest rates compared to other financing options.
Good Read: The pros and cons of personal loans
There are other financing alternatives you can use when looking for additional funds for your home improvement projects such as other FHA Loans Laredo. Consider all the pros and disadvantages of each, and you’ll soon come up with a decision that will best suit your needs.