How to Fund Your Home Renovations: 5 Options to Consider

Home improvements can do so much more than just improve your home’s curb appeal. But then again, you have to consider the fact that some of these projects, depending on their magnitude, can be costly, perhaps even beyond your wallet or current bank account balance.

As a homeowner, this brings in the need to think about your funding options. Here are 5 options to consider when it comes to funding home renovations.

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You can expect the cost of your home remodeling project to be higher depending on your location, the scale of the project, and the contractor’s fee. As far as home renovation costs go, sources indicate that, on average, homeowners can expect to spend anything between $60 and $150 per square foot on remodeling projects.

#1 Save Up!

This might come as a surprise but truth be told, it’s achievable. The thing is, and as earlier mentioned, some home renovation projects can be costly, making it important to figure out how much you need before seeking funding or saving up.

For instance, if you are going to work on your kitchen, the first thing you’ll have to do is determine the average kitchen remodel cost. This, while focusing on the kitchen’s layout, cosmetics, and other nitty gritties that may come into play.

One thing to note is that in the long run, paying the renovation costs in cash will be fairly cheap. Hey, you might also consider buying construction materials early enough before they get pricey.

#2 Consider Home Renovation Financing

Home renovations are costly and you need all the help you can get. The best part is that there are so many financing institutions that could be willing to meet some of these remodel costs if you meet their qualification criteria as a borrower.

So, what are some of the most common home improvement loans? Check out the following:

• Cash-out refinancing
• Credit cards
• Home equity loans
• Personal loans

Before you take out any of the financing options mentioned above, ensure that your credit score is as per the bank’s requirements – that you have an outstanding credit history, and that you have the means to repay the loan.

#3 Crowdfunding

You can get help from various sources to fulfill your real estate dreams. In the recent past, real estate crowdfunding has continued to grow in popularity as among the most effective ways to raise money.

Why not use it to realize your home renovation goals? Did you know that you now have crowdfunding websites that will open these possibilities? Well, now you do.

#4 Sell an Asset

There are so many reasons why most people will opt to renovate their homes. For starters, it’s a surefire way to ensure that you will live in a comfy home. Additionally, it can help increase your home’s resale value, make your home eco-friendly, and finally, help improve the safety of your home.

You have the option of selling an asset to help foot some of the renovation costs. It could be an old car, appliances, or marketable securities. And, hey, arranging a yard sale can also help with some minor renovation costs.

#5 Use Home Equity or Line of Credit

You can also use a home equity loan or line of credit for a home remodel. The catch here is that the money you use to fund these renovations would have to be paid back eventually in installments and at an interest!

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And there you have it. The above five funding options can come in handy if revamping your home and giving it that extra pizzazz is your dream.

Published in: Home advice | Author: Yanita