Get Financing and Renovate Your Home!
Financing Your Home Renovation Project is a Great Investment Opportunity
The thought of financing your home remodeling project is one that can cause a lot of worry or embarrassment, depending on the strategy of finance you adopt. Gone are those days when all you could do was to wear your best attire, put on your best smile, and pray that your application is considered favorably. Now, there are several options available to you. We are particular about the way you finance your home renovation/remodeling project and we have gathered vital information on some of the available options which aren’t burdensome.
Do you plan to sell your home soon? Perhaps, you’re a realtor and your business hinges on increasing the value of your buildings. Reports confirm that room addition, kitchen remodels, and bathroom remodels are some of the home renovation projects with the highest ROI. It also helps to consider energy efficient windows, doors, and appliances so as to gain favor in the sight of the government. Quickly, moving on to options for financing your home remodeling project.
Paying With Cash from Savings
You might have a job which pays you cash daily. There are several occupations such as this and this affords you the luxury of saving as you earn. You can also choose to open a savings account, save up enough money to finance your home renovation project, and then pay with cash.
What types of financing are available?
Refinancing Your Mortgage
Depending on the amount you currently owe in debt for your mortgage, you can cash out and refinance your mortgage. For example, you owe about $50,000 on your home of $150,000 and you need $15,000 to complete your home remodeling project. The way this works is that you are given a lump sum of $15,000 and then your mortgage becomes $65,000. You can also check to see if you’re eligible for tax deductions.
How old are you? 70? 65? Okay, 62 and above? Great! Then, you qualify for a reverse mortgage. This will allow you to convert your home’s equity to cash and this will allow you fund your home renovation project.
Government Grants and Home Loan Programs
Are you a proponent of eco-friendly products? Do you want to install energy efficient bulbs, windows, doors, and other appliances? There are tax credits available to you when you upgrade to Energy Star appliances. The federal government also gives funding for you to undertake home improvement projects. Specific demographics such as senior citizens, veterans, Native Americans, rural residents, etc. also enjoy special home improvement resources.
Low-Interest Credit Cards for Small Projects
Is your credit history decent? You’re in luck. You must’ve probably seen offers for 0% credit cards or checks. If your home renovation project is no so exorbitant, we can work something out to favor you. You are, however, advised to read the terms and conditions carefully so as to avoid common pitfalls.
Home Equity Line of Credit (HELOC)
Many homeowners prefer this alternative to taking out a home equity loan. Instead of providing you with a lump amount of money, you get an active line of credit with a restricted ceiling. Here, you withdraw cash as at when needed. This payment method is preferred when you’re having a home remodeling process which takes months to execute.