How to Finance Home Improvement
Home improvement refers to the process of renovating or making changes to a house, such as installing new appliances or fixing the roof. The goal is to make the place more livable and more appealing. Home improvements also include re-purposing rooms, landscaping the property, or making it bigger by adding on.
Whether you are looking to boost your home’s resale value or simply want to enjoy it more, there are a number of projects that can be done without spending a fortune. In fact, according to Remodeling Magazine’s annual Cost vs. Value Report, the top upgrades can provide up to a 70 percent return on investment.
From re-grouting tile to painting walls, these do-it-yourself home improvement projects can add significant value to your house. Moreover, they don’t require any professional help.
Overhauling surfaces underfoot and overhead was a popular home improvement in 2017. More than 5.2 million homeowners replaced carpeting, flooring or paneling, and another 2.5 million upgraded ceiling tiles.
Generally, you should only use a credit card for smaller home improvement projects that you can afford to pay off in a year or less. This is to avoid paying interest for too long, which can hurt your creditworthiness.
However, if you have a big renovation project in mind and need to finance it, consider taking out a home equity loan. These loans are typically repaid over five-30 years through fixed monthly payments. They’re based on your home equity, so be sure to talk to your mortgage bank about the best options for you.