Home improvement projects are significant investments to make for any homeowner. After all, it will require large amounts of time and money and unfortunately, not all homeowners have both at the same time. While the lack of time can easily be solved by making a few adjustments, the lack of funds to bring the project to fruition isn’t as easy. Thankfully, there are many ways to get around such a dilemma.
In this post, roofers from ReNew Home Designs discusses the four different ways you can finance your home improvement project.
Credit Cards – Aside from cash, credit cards are one of the most popular ways to finance a home improvement project, especially when they don’t have the funds on hand. By using credit cards, you can enjoy zero interest on your home remodeling purchases for up to 15 months while earning rewards and credit cards are fairly easy to apply for online. However, keep in mind that your interest rate can reset to the standard APR, which is as high as 24.99% and your monthly payments are also based on how much you spend.
Home Equity Loan – A HEL will allow you to borrow a lump sum of money to be used on your home improvement project while using your home’s value as collateral. Usually, you can only borrow up to 85% of your home’s value. HELs often come with a fixed interest rate and a fixed repayment term, meaning you’ll get a monthly payment that won’t change. While HELs seem like a viable financing method, keep in mind that the disadvantages of this method is that you could risk losing your home if you fail to repay and you need a lot of home equity just to qualify for a loan.
Personal Loan – Personal loans are another popular method of paying your exterior home services provider to spruce up your home. This is because the benefits that come with them don’t pose as much of a risk as a HEL. They come with a fixed interest rate and monthly payment, you don’t have to put up your home as collateral, and you can borrow more compared to a HEL. The disadvantages of personal loans, however, include higher interest rates, charge fees and the fact that the best rates and terms are only applicable to those with good or excellent credit. If you’re uncertain how to finance your home improvement project, don’t hesitate to ask the professionals of ReNew Home Designs for help and advice.
Home Equity Line of Credit – A HELOC works similarly to a credit card, meaning they can work as a line of credit that you can borrow from and you only repay what you actually use. This means, they come with variable interest rates that may change overtime. The advantages of this method is that you only borrow what you need, they have low fees and you may be able to deduct interest on your taxes. Despite that, you’ll also have to keep in mind that your payment depends on how much you borrow and you need a good home equity in order to qualify for the loan.
Turn to ReNew Home Designs for your home improvement needs. We are your leading provider of roof replacement and commercial roofing services. Give us a call at (410) 415-1226 or fill out our contact form to get a free estimate. We serve homeowners in Annapolis, Columbia, and other nearby areas in MD.