From upgrading to a top-of-the-line kitchen to expanding for a growing family, home improvements can completely transform the look and feel of your current home. Certain renovations can add tens of thousands of dollars to your home’s value, essentially paying for themselves if you ever decide to sell.
If you’re dreaming of a new, marble-topped island or a spa-like master bathroom, here are five ways to finance your home improvement projects.
Save up and pay cash
There are few things more satisfying than being completely debt-free. If you think major home renovations are in your future, but you don’t want to take out loans to finance them, it’s time to start saving. You can build up your home improvement savings account by selling unwanted items, picking up freelance jobs, or refinancing your existing loans to get a lower interest rate.
Take a chance on a fixer upper
Nice neighborhood, great schools, right price—you find a home that hits these major points, but it could use a little extra love. Taking a chance on it could mean the opportunity to create your dream space. FAIRWINDS offers affordable and flexible home financing, so you can put every extra penny towards your ideal home transformation.
Refinance your mortgage
Are you paying too much interest on your current home loan? Refinance your mortgage to take advantage of a lower rate. This can give you a little extra room in your housing budget. Money that you can put towards home improvements, renovations, or to build up your savings (see tip 5).
Take out a home equity line of credit or second home loan
Use your current home to finance your dream project with a home equity line of credit (HELOC) or second mortgage. A HELOC comes with a specified draw period and repayment period. This allows you to borrow from your line of credit and then pay the amount back over a specified period of time. With a second home loan (or home equity loan), you’d receive a one-time, lump sum of money.
Apply for a personal loan
If you have a good credit score (opportunity to link to blog on building credit), applying for a personal loan can help your renovations roll along smoothly. Personal loans generally come with a shorter repayment period, and can be a great option for smaller renovations.
Dive deeper into your home financing options and make your dream home transformation a reality with the help of a FAIRWINDS mortgage expert. Learn more online or stop by your local branch.