Below you will find 5 ways to finance the home improvement project that you have always wanted to complete:
- Home equity line of credit (HELOC): If you have equity in your home, a low-interest, variable rate HELOC is probably the best choice for you.
- Personal loans: Consider this option before using your credit card for a more expensive home improvement project. Many personal loans often have lower interest rates than credit cards and with many of them having fixed rates instead of variable rates it makes it easier to budget for repayment.
- Government solar energy incentive programs: If upgrading to Energy Star appliances or thinking about adding solar panels or solar water heaters look into tax credits from federal, state and local governments. Click here for more information on tax credits.
- Cash-Out Refinancing: If interest rates today are significantly less than when you first purchased your house, refinancing your mortgage may be a wise move. This refinancing alternative allows you to use the accumulated equity in your home to take out a new loan to pay off your existing mortgage and then use the remaining funds for your remodeling project.
- Cash: It may seem like a far-fetched idea to be able to pay for a home improvement project all in cash. If it is a project that does not have to be done immediately, why not save for it and not have the burden of interest rates and repaying loans?