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.
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.
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.