Ways to Finance Your Dream Home Improvement Project

People are constantly looking for ways to improve their homes, but the shocking thing that makes many of them to pull back is the amount of money that they have to spend doing so. Upgrading an average kitchen would cost at least $20,000, while a bathroom could cost up to $9,000. This information is according to homeadvisor.com, and that is a cost that the ordinary person just can’t afford out of the pocket in these hard times. Many people therefore end up keeping on postponing the home improvements, and before they know it, they are too old. The problem is that life has also taken a fast lane, and having lose money is not easy. People have to look after their kids, plan for their college education, cover their medical insurance and a host of other commitments. That is why in this article, we are going to look at the different ways to finance you’re dream home improvement project. Please note that these are just some of the ways, and there are many more ways to finance depending on a person’s particular situation.

Ways to Finance Your Dream Home Improvement Project

Obtain a home equity line of credit

You can consider taking a home equity line of credit against the value of the home although it doesn’t clear the original mortgage. With this, a person receives a line of credit according to the value of their home, normally up to 80% of the value. They will have a draw and repayment period, and the draw period can go up to ten years. The interest that is paid on the home equity line of credit is tax deductible, just like with mortgages, only that it is limited to $100,000.

Take out a second home loan

Also known as a home equity loan, this is a great method for one to get into their equity without refinancing. They will instead receive a line of credit in a lump sum of money. This second home loan makes perfect sense if one does not want to refinance their first mortgage. In this case, the interest rates can be deducted tax.

Apply for a personal loan

Refinance offers more tax advantages than personal loans, but they are still an alternative method of financing your home improvements. One may need to put up collateral, and in this case they can use their home. If one has a good credit history, there might not be the need for collateral to qualify. Personal loans come with higher interest rates as compared to home equity financing, and the timeframe to repay the money is also shorter. This means that the longer the window period, the les the money paid back monthly, but the higher the interest rate.

Use a credit card

You can use your credit card to pay, but note that they come with higher interest rates than the other financing methods. You can also take advantage of cards that offer rewards for the money spent with them.

Save and pay cash

This one could take time, but it is also the best way for one to stay within their budget.

Credit Car Loans

Are you having problems with bad credit car loans? You might want to consider checking with Drive Thru Finance. It is one of the companies that can help you sort your bad credit when you’re looking for finance to buy a new car. Keep an eye on their website for more information regarding their services.

Conclusion

Cars, just like dream homes, need financing, and you need to have access to money in order to purchase them and to maintain them. You can use loans, savings or credit cards to finance them.

Some Tips in Building a Tiny House

You have probably dreamed of living in a tiny house for as long as you can remember. You have seen other people have homes that may be considered to be really small but look great nonetheless. When purchasing a tiny home, you may choose to buy a pre – built home but you have to admit that it may not fit the specifications you have in mind.

You may be thinking about getting a loan for your home but you are not sure how to do it because your credit score is not at its best. The best thing you can do is to hire experts that can work on your credit restoration. After some time, you can expect that your credit will be good enough to get a good loan. You can have enough money to have your tiny house built.

Just remember that if you would like your tiny home to look amazing without having to use too much energy, you can always make your home more energy efficient. For example, you can consider having some solar panels strategically placed in various parts of your tiny home. The energy that you can get from these solar panels can be used in different ways.

Some Tips in Building a Tiny House

You can always have your tiny house made as long as you would follow these tips:

  1. Remember that there are fold down options available.

One of the reasons why people are able to do a lot of things with their tiny homes is because they have fold down furniture that can be folded down when they are not needed. This furniture may not be used all at the same time but when you think about it, you do not normally use these things all at once.

  1. Your walls will make a lot of difference.

Do you realize that your walls are not merely there in order to keep you safe from different weather conditions or to give you privacy when you want it. These walls can serve as the place where you will hang all of the items you need. Your kitchen can truly feel like a kitchen with all the various items you need all hanged up on the walls of your home.

  1. Make sure that your tiny house is not cluttered.

One of the reasons why you can become unhappy about tiny house living is because of the clutter that may form when you feel like you do not have enough storage anymore. When you reduce your clutter, you will feel like the space that you have in your home is sufficient to keep you comfortable.

  1. Have high ceilings on your tiny house.

You may feel a bit cramped when the ceiling of your tiny house is small. You would also reduce the amount of things you can place with not enough ceiling space. Your ceiling can be used for storage too provided that you are creative in designing the proper storage space.

With all of these tips in mind, you may just have the tiny house that you have always dreamed of having.