Three tips on financing a remodeling project
Posted on Thursday, May 24, 2012 at 6:17:52 PM
Remodeling projects are increasing in popularity in this post-recession economy. The National Association of Home Builders’ remodeling market index rose to the highest level in five years for the fourth quarter of 2011. As a result of the increased popularity, more homeowners are looking for new home improvement financing options.
"It is important to make sure you explore your financing options to ensure you put yourself in the best program for your needs. Each individual borrower needs to list their priorities in regards to their financing, whether it be the lowest interest rate available, the lowest payment available or in some cases the shortest term available to reduce the amount of interest paid over the life of the loan," said real estate financing expert Chris Tibbetts.
Here are three ways to finance your home improvement project:
1) Home Improvement loans. Selecting the right loan can provide you with a tried and true method of affording home renovations.
2) Cash. If you can afford to, paying for a home improvement project outright can reduce the cost of the project over time due to no accruing interest on the original purchase price.
3) Home Equity line of credit. Taking out a line of credit on your house will allow the property to practically finance its own improvements. However, it is key to not take out too much, as with all credit.