A home remodel can be very expensive. It can be prohibitively so, especially when you are not doing the remodel to get a better price when you sell the home but rather to make it better to live in. To cater for all the remodeling expenses, you might need to look for the money required to complete the renovations. Here are some finance options to look at.
Get a Loan
There are many different loan options for homeowners looking to remodel. You could get in touch with credit unions, banks, and other lenders to see what options are available to you. If you are comfortable putting your home up for a second mortgage, know that that is very popular for a lot of people. Lenders often give you the second mortgage because they understand you are increasing your home’s value.
Just ensure you negotiate for a good interest rate for the second mortgage if you already have a mortgage to make it easier to keep up with the payments.
Consider a Car Title Loan
When looking for external funding for your remodeling project, you should try to get favorable terms so you are not saddled with a debt you are unable to pay. Secured loans often have better terms than unsecured loans such as lower interest rates and the ability to borrow higher amounts. A good example of a secured loan is a car title loan. This is where you put up your car as collateral and get a loan based on the value of the car. Although you have to give up your car’s title, most lenders who extend car title loans Springfield will let you keep driving the car while you repay the loan as long as you have the right kinds of insurance.
This way, you get the money you need to remodel your home and keep driving the car while you make your payments.
Use Credit Cards
If you are considering minor changes to your home, credit cards might be adequate for all you need to have done. One benefit you get is that some credit cards have no interest rate for the first few months or if you keep up with your repayments. Some cards also come with rewards, so the more you use to remodel the home and pay back, the more cash you could get back to put into the project.
Remember to repay all you have borrowed on the credit card before the interest-free period expires if you are on a new card or before your repayment period lapses if you are using an old credit card. This will help you avoid the high interest rates and late fees you incur should you default on payments.
Sell Some Assets
Sometimes, borrowing might not be the best route, especially if you are already servicing other debts. If you have any valuable items or equipment that you no longer use, you could sell those to finance your remodeling. Things like a second car or some appliances in your garage you do not use should net you a few thousand dollars that you can put into the remodel.
While it might seem like an impossibility, finding the funds to complete a remodeling project should not be impossible. There are lots of different ways to get the funds you need, be it borrowing, taking a loan or even getting rid of some of the things you no longer need or use.
Photo by Milivoj Kuhar
Paola Ramirez
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