Are you considering a home improvement project this year?
From my Realtor friend, Jay McHugh, here is some information on how to pay for home improvements – if you plan to do this at some point.
Maybe out of necessity you might need a new roof or fence — or you might want more space or additional amenities, like an updated kitchen, bathroom, or a swimming pool.
Whatever the reason for your projects, you’ll likely wonder the best way to pay for them.
Here are four ways to cover the costs.
- Home Equity: You can leverage your home equity to cover home improvements. Among your options are a home equity loan, cash-out refinance, and home equity line of credit (HELOC). The latter, which functions more like a credit card, is a good option if you’re not sure how much you need or if you need cash over an extended period.
- Cash Savings: This can be a great way to pay for any home repairs or updates — just make sure you’re not draining your emergency fund. You should always have a healthy amount of savings as a homeowner so that you’re ready for maintenance, repairs, and other expenses even if you hit a financial snag.
- Home Remodeling Loans: Renovation and remodeling loans are designed just for this purpose. You can use them to cover repairs, updates and other improvements. You can then pay the costs back over time as with any other type of loan.
- Credit Cards: These should be a last resort, since credit cards typically come with higher interest rates than other financing options, like loans and lines of credit mentioned above.
And if you have any specific questions, please reach out to me.
To Your Prosperity,
Rennie
