It’s no surprise that remodeling your home costs as much money as a few mortgage payments. From giving your home a facelift to taking on rewiring your home, you’re going to need a fair amount of money to get started with your home renovations.
Money for Renovations
When it comes to financing your home remodeling projects, you need a lot of capital upfront. While you may already have enough squared away, it can be a bit of a challenge if you don’t. Trying to find enough money to get your remodel on? Scroll down for three easy ways to get more money for your next home reno project.
1. Home Equity Loan
A home equity loan will allow you the benefits that a conventional mortgage offers, without any of the closing costs. You can get the loan up front and must pay it off in the next 15 – 30 years. Typically, these loans have fixed interests that will be easy to factor into your budget.
2. Home Equity Credit Lines
With a home equity credit line, lenders will allow you to borrow up to a certain amount, only charging interest on the amount you use. Some of these credit lines offer credit-card or checkbook access with no minimum amount required. As you continue to work on your home, you can access these funds whenever you need to. Since home improvement projects can last for months, this option is a great solution for consistent funding.
3. Home Improvement Loans
There are a variety of home improvement loans that you may be able to be eligible for. Whether it’s the TItle I Home Improvement loan or a personal loan, there are options. For example, if you or your spouse is a veteran, consider a VA refinancing loan. VA home improvement loans allow borrowers with first liens or mortgage on their property to apply for cash-out refinancing, which can be used for any reasons acceptable for the lender.
4. DIY to Save Money
If you have a home improvement project that needs doing but are capable of completing it on your own, go for it. Need your carpet pulled up or your walls painted? Set some time aside on the weekend and get it down yourself. Put the money you would’ve spent to better use by saving it for something that indeed requires a professional.
Remodeling your home isn’t something you can do with the spare cash in your wallet. Use these four strategies as a way to kickstart your brainstorming for ways to finance your home renovation. With a little creative thinking, you’ll be able to meet your remodeling budget and get started with your renovation plans. Just be sure to avoid the mistakes of rookie home renovators!
Home Improvement Loans: Compare Your Options