Home improvement is a great way to add value to your home. It can be a small project such as replacing the front door or it can be a major undertaking such as renovating your kitchen. You can also use your home to finance your renovation, such as with a home equity loan or line of credit. However, before you go out and start remodeling your house, you need to consider how it will affect the resale value.
There are two main types of home improvement financing: the personal loan and the home equity loan. The latter has higher interest rates, but is better for long-term projects. If you have good to excellent credit, you should consider a personal loan. Unlike a traditional mortgage, there is no contractual obligation to keep up with payments.
A home equity line of credit is a more affordable option for homeowners with enough equity in their homes to borrow against. Homeowners can take out a home equity line of credit up to 85% of the value of their home. These loans can be used for debt consolidation, home improvements, or even college. They are also a good choice for homeowners who don’t have enough equity in their homes to qualify for a traditional loan.
One of the best ways to finance a home improvement is by refinancing your existing mortgage. This can be a quick and easy way to secure extra cash for your home improvement needs. Even if you aren’t planning on selling your house anytime soon, it may be worth it to have a new roof, a kitchen remodel, or a new paint job. In addition, many home equity lenders offer low interest rates on these loans.
Several credit card companies offer introductory 0% APR periods, and you can find a home improvement credit card that offers you 18 months to pay back your balance. Although these cards are great for emergencies, they are not the most suitable type of financing for a long-term project.
The home improvement industry saw a flurry of activity last year. According to the Harvard Joint Center for Housing Studies, the first quarter of this year is expected to see a jump in home remodeling. Also, a recent survey from Zillow showed that seven in ten homeowners plan to have a home improvement project on their to-do list by 2022.
One of the newest entrants to the home improvement market are private label retailers. These retailers compete on pricing, product portfolios, and premiumization. Some of them are members of reputable associations.
The biggest question is: do home improvement projects really boost your home’s resale value? For example, a new front door might improve your home’s appearance, but will your potential buyers appreciate it? Additionally, it might not be the smartest move to add marble floors in your bathroom.
The best way to know which home improvement loan is right for you is to compare a few different options. Compare the advantages and disadvantages of each before making a decision.
