The arrival of spring signals the start of home improvement season. This is the time when there are many home shows coming in towns to showcase some of the best remodeling designs that can help spruce up properties. Choosing the right loan facility will allow you remodel your home cost effectively. Before you borrow, you need to know what you really want to do with the home.
You should answer questions such as; do you want to spruce it up or just need some repairs. Major remodeling can take a large amount of dollars which you may not afford. Applying a fresh new painting coat on your kitchen countertops may be considered freshening the house. Designing new windows and installing carpets may be considered repairs but creating new master suite or an extra room from the basement can be considered a new construction which is more costly.
Any home improvement you do should add value to your home. The bathrooms and kitchens are typically the most value adding components in home improvements. Usually, cosmetic improvements or repairs may not add value as such and therefore, you have to know how to go along with their costs. However, repairs add more comfort to your living experience.
With all set to begin repairs, you need to find out what kind of financial option you have. When you undertake a major home renovation, you need to create and adhere to your budget. According to Remodeling Magazine, it is estimated that the average cost of remodeling or renovating a mid range kitchen is above $58,000. It is essential to have a budget that you can manage.
You should give some thought as to what would happen is you went 20 percent over. In a record prepared back in 2009 by Consumer Reports, it established that 56 percent of kitchen remodels went over their original budgets. If you do not have the cash, there are a number of option you can reach out for including a home equity line of credit which offers low interest, contractor loans, title 1 home improvement loans, and personal loans.
Homeowners need to consider how they will finance their projects since without proper planning; the tasks can be very costly in the long run. A title 1 home improvement loan is offered by the private lenders who are insured by the government to give up to $25,000 loans for home improvement. These loans may be offered in long term lasting for up to 20 years. The borrowers taking these loans do not have to have equity in their homes in order to be eligible for the credit facility. The funds can be used for any home improvement except for luxury items such as bathtubs.
A home equity line of credit- HELOC with low interest and variable rate may be a good option if you have equity in your home. The HELOC loan uses the home as the collateral and you can borrow a certain percentage of the home equity. Because of the plummeting home values, it means that only consumers who put in significant payment of down payment or those who have lived in their homes for many years are likely to be approved for these loans.