With the rise in the number of DIY stores, more and more people are encouraged to advance their houses in brilliant ways. However, house renovation could be a costly affair and would require you to take a loan and carry out the improvisations which you desire or need.
Getting a house improvement loan could be the perfect idea as it will add to the value of your house in case of future sale. But what possible methods do you have for funding home renovations. Below here are some ways through which you can fund big as small home improvements:
When you talk about big home improvements like remodeling or extensions, then you may need to borrow money for the big work. And, the best two options for bug home improvement projects are remortgaging and unsecured loans.
Several smaller home improvement projects do not pose a requirement of huge loan amount or additional mortgage money. Such type of improvements can easily be cleared through savings or credit cards. In case, if your credit card bill stands in arrears, then you can opt for credit card debt settlement to get rid of that. However, if you pay for something out of your savings, then it is a much better option. Examples of small renovation projects include redecorating a room or repainting it.
For those who have poor credit or need to borrow a hefty sum for improvement, then mortgaging is the best option. It means you can acquire a new mortgage for the money you owe on your house along with the amount which you require for house improvements. For instance, if you need $5000 for improvisation and $500000 left on the mortgage, then you can remortgage for $55000.
The benefit of such mortgage is that the rates are comparatively lower than the other form of loans at mostly 5 to 6% and the payment isn’t noticeable as it is already included in the mortgage repayment sum. The major con of this method is that you may lose your house in case you fail to make the repayments and it takes quite a long time to clear the repayment.
For those who enjoy a good credit score and need a sum of $5000 to $20,000, then obtaining an unsecured loan is just the right choice. Unsecured loans are perfect as you don’t have any risk of losing your house, if you fail to make the payment as the repayment tenure is small in comparison to the mortgages. However, the rate of interest is high.
Should you go for improvements?
Before you take a step towards home improvement, the first thing to keep in mind is the overall advantage which the renovation will render. If the benefits are all about luxuries which you can do without, then opting for a home improvement wouldn’t be a great idea. But, if on the other hand, the improvisation will make your home a good place and enhance its value, then you should definitely go for it.