Renovations not only breathe new life into your home, but they also increase the resale value of the home. If your desired renovations are going to total thousands of dollars, consider a loan or line of credit to help cover these expenses.
If you have equity in your home, you can finance up to 80% of the value of your home and use the funds towards renovating your home renovation. Here are several financing options available to you:
- Loan: A personal loan provides you with the funds you need to make a large purchase while giving you a lower interest rate than a credit card and a set timeframe in which to pay off the loan. You can secure your renovation loan using the equity in your home as collateral, which may make you eligible for an even lower interest rate. Loans are also somewhat customizable in that you can select your preferred interest rate, whether it’s fixed or variable, as well as your preferred repayment plan.
- Line of credit: If your renovation plans are ongoing, a personal line of credit may be a better alternative to allow you to borrow money and repay it as necessary.
Maximize your loan with these renovations
A new kitchen or bathroom can add value, a new look and feel to your home, making you fall in love with your home once again. Hardwood floors are also a major selling point in homes. If you have them, invest in refinishing them. If you have gotten tired carpet on top of nice floors, rip that out and spruce up the floors.
Our advice would be to always find a Home Renovation expert that is highly recommended by a friend or relative to assist you with your home renovation as mistakes can be very costly in the renovation business.
Ask for references, a portfolio of previous work done, make sure that they’re licensed and insured and finally check to make sure that they are truly a registered renovation business.
For more information about a home renovation loan or refinancing, please contact us. In the meantime, find out how much home equity you have in your home with our Handy Home Equity Calculator.
