• Home
  • About Us
  • Toolkit
  • Getting Finances Done
    • Hiring Advisors
    • Debt Management
    • Spending Plan
  • Insurance
    • Life Insurance
    • Health Insurance
    • Disability Insurance
    • Homeowners/Renters Insurance
  • Contact Us
  • Privacy Policy
  • Risk Tolerance Quiz

The Free Financial Advisor

You are here: Home / Personal Finance / Funding Home Renovations: What You Need To Know 

Funding Home Renovations: What You Need To Know 

April 28, 2021 by Susan Paige Leave a Comment

Whether you’ve been in your home for months or decades, sometimes it is time for a change. Renovations can be an excellent way to put your own stamp on a property and let your creativity shine.  

Funding a renovation can be challenging but by no means impossible. Read on for some of the most important things you need to know about financing a home renovation.

Set A Budget 

If you plan to use credit cards or loans, you should set a clear budget that you can afford to borrow. You should get advice from an accountant if you are unsure to avoid lending more than you can afford.  You should decide what renovations you want to get an idea of the cost. Be prepared to spend more than you expect.  

Using Your Savings 

The simplest way to finance renovations is by using your savings. This method removes the possibility of interest and penalties for missed payments that come with other methods. You should be sure that you can afford to use your savings on a big project while keeping a financial cushion.  

Paying With A Credit Card 

If you decide to pay for your renovation with a credit card, you should look for a card that offers a period of interest-free usage. Be aware that if you do not pay the balance back before the interest-free period is up, you may be subject to interest which may rise over time.  

Home Refinance 

Home refinancing allows you to pay off your current mortgage for a new, larger one. You can then use the extra cash to pay for home improvements. This option is excellent for those who can afford a larger mortgage and can come with the benefit of lower interest. Find out more about cash out refi from The Home Loan Expert, who can ensure you get the best value for money.  

Taking Out A Loan 

Getting a loan can give you a quick infusion of cash. You should always shop around to find the lender that will provide you with the best rates of interest and payback terms. Be wary of taking out a large loan if you already have any existing debt to prevent biting off more than you can chew. 

Compare Tradespeople 

Shopping smart can help you get more for your money if you borrow to pay for the work. Contact a number of suppliers and contractors to find the best quotes, but avoid exchanging quality for cost. You could also buy some supplies in bulk to reduce costs.  

Final Thoughts 

There are many ways you could fund your home improvements, and it may require a mix of the options above. You should always plan ahead and ensure that your budget is affordable.  

Shopping around for loans, credit cards, supplies, and contractors can help you get the most for your money. If you are unsure, it is a good idea to contact a professional for advice on how to finance your renovations.  

(Visited 10 times, 1 visits today)

Filed Under: Personal Finance

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FOLLOW US

Search this site:


Recent Posts

  • How long should you keep financial records after a death? by Jacob Sensiba
  • Can My Savings Account Affect My Financial Aid? by Tamila McDonald
  • What Advantages and Disadvantages Are There To… by Jacob Sensiba
  • How to Recover Pay Stubs From Your Old Job? by Susan Paige
  • How to Avoid NJ Exit Tax by Jacob Sensiba
  • When Are Manufactured Homes a Good Investment? by Tamila McDonald
  • Appreciating vs. Depreciating Assets by Jacob Sensiba

Copyright © 2022 · News Pro Theme on Genesis Framework