Higher Living Real Estate, LLC
Kay Wallace, Higher Living Real Estate, LLCPhone: (843) 516-0255
Email: [email protected]

What's the best way to finance home improvement? A guide to the basics

by Kay Wallace 12/17/2023

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Major home projects can be costly, which means it's important to find the best way to finance home improvement. While there are plenty of financing options available, each can have serious drawbacks in addition to their benefits. Some situations might benefit from one type over the other.

So, how do you choose? Here is a simple guide to help you figure out the best financing option for your home improvement project:

What is the best way to finance a renovation?

To find the best home improvement loan or financing option, you'll need to know all the options. The main ways homeowners pay for their renovations include:

  • Cash savings.
  • Cash out refinance.
  • Home equity loan.
  • Home equity line of credit (HELOC).
  • Credit card.
  • Home remodel or repair loan.
  • Home improvement loan.

Is it better to finance a remodel or pay cash?

When deciding between financing or cash options, there are several things to consider. Primarily, think about the scope of the project. Are you planning to remodel an entire home, or start with a smaller project? Timelines are also an important factor. Do you need to complete your remodel as soon as possible, or are you more flexible with your time?

For many homeowners, the simplest and safest way to pay for a renovation is with cash. This cash typically comes from a savings account built up over time. However, not everyone has a lump sum ready for a project, which makes loans and other financing options better for homeowners in a hurry.

If you don't have cash on hand but are responsible with monthly payments and have an excellent credit score, a loan - either an unsecured personal loan or a home equity loan - might be more helpful for your situation. Home equity loans and home equity lines of credit use the value of your home as collateral, and can offer more long-term flexibility with payments.

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Ultimately, the best financial choice will come from considering your options and weighing their pros and cons. If you get stuck, remember that consulting a financial advisor or remodeling contractor can be beneficial if you ever need an expert opinion.

About the Author
Author

Kay Wallace

I am passionate and dedicated to achieving results that enhance your lifestyle and well being. If you’re looking for a realtor that listens to your needs, responds quickly and has your best interest in mind, look no further. I will treat your money as if it is my own and help guide you in your real estate process with open eyes.

With over 15 years experience in the real estate industry, specializing in all aspects of the Residential Real Estate market to include resale, new construction, relocation, investment & first time home buying.

My real estate career is not just a business to me...it’s my Ministry.

I look forward to meeting you!