Choosing to take on a home improvement project to increase the value of your home is a smart decision. The main obstacle you must overcome though, is finding a way to pay for the home improvement project. Homeowners have many options available to them for these types of projects, from borrowing against the equity they have in their homes and credit cards to using any financing available directly through the company they are using to complete their project.
Home Improvement Financing Through Home Equity Loans
Home equity loans are a way to pay for home improvement projects with the equity you already have in your home. Home equity loans are obtained through financial institutions like the company you already have your primary mortgage through, a bank, or other private company that provides mortgage financing.
In order to obtain a home equity loan, you have to owe less on your home than what it is worth. If this is not the case, you won’t be able to obtain the financing for your home improvement project this way.
Using Credit Cards for Home Improvement Financing
Credit cards are the easiest thing to reach for when you are working on a home improvement project. The financing has already been approved and all you have to do is hand over the card to the company to instantly pay for whatever you are buying.
Credit cards have two downfalls though. One, the approved credit on a credit card isn’t always in the amount you need it to be. For example, very few people carry credit card limits that are high enough to pay for the materials and labor on a home improvement project that alters the structure of the home itself.
Two, the interest charged on a credit card is most likely higher than what you will get on a home equity loan. It is definitely higher than companies that run special financing offers, like ones that have 0% financing.
Home Improvement Financing Directly from Home Improvement Company
Depending on the type of home improvement project you are planning, you may be able to find financing through the company you are working with. For example, for home improvement projects that involve replacing your windows, Renewal by Andersen has a 0% financing program available currently.
The money to pay for the project doesn’t actually come from the company you are working with, but rather a bank that is working in partnership with the company. Either way, you get the money you need for your home improvement project and usually at a great financing rate.
Schedule an in-home consultation with an Renewal by Andersen team member to view your options!