Homeowners spent an average of $6,649 in the past twelve months to cover home remodeling projects. Nearly 66% of homeowners plan to do renovations in the coming year with painting the exterior of a home, landscaping, and kitchen remodeling the most popular projects. Unfortunately, getting the money to fund a home remodel is the biggest hurdle facing house owners. Tapping home equity, using credit cards and taking on extra work are some ways to secure the money for a planned home renovation project.
Get help from the financial sector
Whether you’ve lived for a long time or just moved into your abode, there are several ways to finance a home remodeling project. One is to avail of a home equity loan where you use the equity of your property as a collateral with the amount dependent on the value of your house.
Another option is to get a home equity line of credit (HELOC) where you can mobilize your home equity without refinancing. There’s a set limit that you can borrow against just like ceilings of credit cards, and the stipulations are clear that the money should be used for remodeling projects. Refinancing your mortgage is the third option and depending on your current interest rate, you might be able to put money aside if you can refinance your loan at a lower rate and longer term.
Use informal sources of funding
If the three options above are not acceptable because you don’t want to take risks or believe the terms are too high for you, there are other ways to raise enough funds to upgrade your home. Saving money and paying renovations in cash may take some time but it will remove prohibitive finance charges. Borrowing money from your parents or relatives at zero or very low interest rates is another alternative. Requesting monetary gifts during events such as weddings, anniversaries or baptisms might seem odd and cold but it can help fill up your coffers.
Tap your entrepreneurial spirit
Often, a financial crisis can turn into business opportunities. Think of renting a room or an unused part of your home through popular home-sharing websites. If your location is highly-sought, you will get enough bookings and may even need to turn away some. Other means of supplementing income include taking side gigs. Dog or house sit, sell articles online, rent your den or garden for events as well as idle sheds and garages for storage and the driveway for parking. The possibilities are nearly endless, you just need to be creative and resolute in pooling the money.
Finding the cash to pay for your home renovation need not be the end of the world. Granted that money is tight, with the proper planning and management, you’ll soon master the art of fund generation for your home renovation project whether you consider going to financial institutions, saving or working extra shifts.