Home improvements, such as kitchen and bathroom remodeling projects, can significantly increase the functionality of your space. If you’re thinking of selling your property in the future, these upgrades can also add to its value. Moreover, when planning home upgrades, one of the first things you should consider is the budget.
Here are ways you can finance your next home improvement project.
Home Equity Loan
A home equity loan will let you borrow a lump sum of money while using your home’s value as collateral. Usually, you can only borrow up to 85 percent of your home’s value. This type of loan comes with a fixed interest rate, meaning you’ll also get a fixed monthly payment. It can let you borrow money for up to 30 years and the interest may be tax-deductible given your taxes are itemized and you use the money for substantial improvements.
Many homeowners apply for personal loans for their home remodeling projects, like decks and additions. This type of loan can be obtained from online lenders, peer-to-peer lenders, credit unions and banks. It usually has a reasonable interest rate. Personal loans may have higher rates than home equity loans but they should be below the standard APR on credit cards.
Regular credit cards are not the best option for financing home improvements because they usually come with an APR of at least 17 percent. However, balance transfer cards offering 0 percent APR on purchases can be a good option for small projects. Take note that balance transfer cards only offer 0 percent APR on balances transfer from other loans of cards. This means you should look for cards that offer the 0 percent APR on purchases as well.
At VillWell Builders, LLC, you can count on us for quality home improvement projects. Don’t hesitate to ask our team about our flexible financing options. We install siding, roofing, windows, decks and more. Call us at (888) 256-3780 or fill out our contact form to get a free estimate.