How to Finance a Home Improvement Project
Home improvement is a term used to describe any kind of renovation or remodeling project on your home. It can include interior or exterior improvements, and can include anything from painting and repairs to resurfacing the pavement and adding a deck or garage.
According to a survey by Axiom, a Minneapolis marketing firm, homeowners are planning to spend more on their home projects in 2021 than they did in 2017. Eighty-five percent of respondents plan to start their home improvement projects in the first half of the year, with some working on multiple projects.
When considering a home improvement project, you should also consider how it will affect the resale value of your home. For example, if you install marble floors in your bathroom, you may not get much for them if you ever try to sell your home.
Another consideration is whether or not you should use a credit card to pay for your renovation. Credit cards are great for emergency needs, but they are not recommended for long-term financing.
The best way to finance a home improvement project is to borrow against the equity in your home. This allows you to improve your home’s resale value, but you might have to pay interest on the loan.
If you do decide to borrow money, however, you might want to get a mortgage lender to help. They are the most likely to approve a home improvement loan.
You might also be able to get a home equity line of credit (HELOC) to borrow against the value of your home. But, this will come with a higher rate than a personal loan.