Ignite FB Tracking PixelWhat's the best way to finance home improvement? A guide to the basics - Cindy Voltz
Coldwell Banker Realty Center Harbor NH
Coldwell Banker Realty Center Harbor NH
Cindy Voltz, Coldwell Banker Realty Center Harbor NHPhone: (603) 998-7433
Email: [email protected]

What's the best way to finance home improvement? A guide to the basics

by Cindy Voltz 02/27/2023

Living room

Major home projects can be costly, which means it's important to find the best way to finance home improvement. While there are plenty of financing options available, each can have serious drawbacks in addition to their benefits. Some situations might benefit from one type over the other.

So, how do you choose? Here is a simple guide to help you figure out the best financing option for your home improvement project:

What is the best way to finance a renovation?

To find the best home improvement loan or financing option, you'll need to know all the options. The main ways homeowners pay for their renovations include:

  • Cash savings.
  • Cash out refinance.
  • Home equity loan.
  • Home equity line of credit (HELOC).
  • Credit card.
  • Home remodel or repair loan.
  • Home improvement loan.

Is it better to finance a remodel or pay cash?

When deciding between financing or cash options, there are several things to consider. Primarily, think about the scope of the project. Are you planning to remodel an entire home, or start with a smaller project? Timelines are also an important factor. Do you need to complete your remodel as soon as possible, or are you more flexible with your time?

For many homeowners, the simplest and safest way to pay for a renovation is with cash. This cash typically comes from a savings account built up over time. However, not everyone has a lump sum ready for a project, which makes loans and other financing options better for homeowners in a hurry.

If you don't have cash on hand but are responsible with monthly payments and have an excellent credit score, a loan - either an unsecured personal loan or a home equity loan - might be more helpful for your situation. Home equity loans and home equity lines of credit use the value of your home as collateral, and can offer more long-term flexibility with payments.

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Ultimately, the best financial choice will come from considering your options and weighing their pros and cons. If you get stuck, remember that consulting a financial advisor or remodeling contractor can be beneficial if you ever need an expert opinion.

About the Author
Author

Cindy Voltz

My husband and I have been residents of NH since 1994, owning property in the Lakes Region since 2002 and having the privilege of living full time in our beautiful Lakes Region since 2014. Previous to moving to NH, we lived in the Indianapolis, IN area for 10 years. You deserve a realtor committed to showing respect for and understanding of your needs, regularly communicating with you, and successfully moving you through the selling and/or buying process. I look forward to meeting with you to discuss your real estate needs.