If you are a homeowner, then you’re likely to have a list as long as your arm of the things that you want to do to the home. Painting, getting new furniture, flooring, and even major renovations could be on the list. Over time we can get bored with things as they are and want to make a few changes. But of course, many of them may just be a dream list. There can be one thing that is standing in the way of getting your home to become the dream home that you have on your Pinterest boards; money. Finances, as well as time, can be the things that are holding you back to get renovations done. But they don’t have to be the only thing that holds you back, as there are options to deal with them.
Time can be easily sorted, as you can make time work for you. But cash can be more difficult. So here are some of the tried and tested ways to finance home renovations. Will any of them work for you?
Cash
Simply putting money aside each month to go towards the ‘dream home’ fund can be a slow but simple way to get the things done that you want to do. As it can be a slow process, it can be a good idea to prioritize the things that you want to do with the savings, so that it doesn’t get spent on smaller things if you actually want to get a conservatory.
Refinance Your Mortgage
If you’re a homeowner with a current mortgage, then you can use that mortgage to your advantage, to free up some cash for the renovations. As you are going to be using the home as the collateral, it can make for a good way to get some money quite quickly and easily. So it can be better for larger renovations that are going to add value to the home. You could also look at a reverse mortgage amortization calculator too. This is a financial agreement where you as a the homeowner relinquishes equity in your home in exchange for regular payments. So again, can be good for larger renovations or home improvements.
Home Equity Loan
If you are finding that there are better rates for personal loans, then you could choose to go for a home equity loan instead. This will mean that you can borrow a fixed amount of money that will be paid back over a fixed amount of time. The best thing for this is to check how much you will be paying back in the long-term, to check that it will be the best option for you. The rates are likely to be fixed, though, so you will go in with your eyes open and know exactly what you will be paying back.
There are other ways to finance like credit cards or constructor loans, but often they can lead to you paying much more over time, especially if the rate isn’t fixed. So choose to finance your home improvements in the right way and it can make a huge difference to what you pay overall.
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