Thinking about remodeling but your wallet is a little light? One of the biggest costs that come with owning a home are the costs of renovations that you want to have done on the inside and the outside. A whole kitchen remodel can easily set you back around $20,000, while a major bathroom remodel might cost at least half that. Siding on a home can easily run around the same as a small kitchen remodel.
Yes, you'll be spending some money to tackle your remodeling, but projects like this also add value to your home in addition to making it more attractive and functional, so they can be wise investments.
But what do you do when you're short on cash?Knowing how to finance your home improvement project is key to ensuring that you can get the project done, but also to be able to afford it easily. Check out these other options for financing the project.
Refinancing the MortgageRefinancing for a lower interest rate can make your payments lower and save you money in the long run. This can provide you with additional funds to cover the costs of the renovations. While you might have to save some of that money for a bit to finance your project, it is a great way to get some pocket cash for anything that is needed around the house as well.
Get a Home Equity Line of CreditAlso known as a HELOC, this uses your home as collateral and provides the borrower with up to 80% of the home’s value, minus the amount currently owed on the loan. This is how many people choose to finance their home improvement projects on their home since they offer lower interest rates and you can roll the payments in with your mortgage.
Take Out a Second Home LoanThis is yet another way to tap into the equity of the home, without having to worry about refinancing your home as a whole. This is also known as a second mortgage, but the rates are affordable and they can provide additional money when it is needed for the primary home that you’re living in.
Apply for a Personal LoanPersonal loans are generally a last resort type of option since they have higher interest rates. However, they can be a quick way to grab the renovations you want by getting you t a large lump sum of cash. You just have to ensure that you pay it off in time.
Lastly, don't forget to check out other options you might not be aware of. Sometimes utility companies, municipalities and other entities offer rebates or low-interest loans for energy-efficient improvements. (The Minnesota Center for Energy and Environment allows you to search for programs by entering your address. You can search the state data base of available programs here.) Tax credits may also be available - check with your tax preparer.
Speak with us here at Quarve to find out additional financing options for some of the home renovations your home may be in need of. We can help you from start to finish to make your dream become a reality. We are a licensed MN exterior home improvement contractor serving the Minneapolis and St. Paul area.
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