My Blog About Sustainable Interior Design
While a simple project is not necessarily very expensive and you can get it financed from your own savings, a more complex project will always need more money that you don’t happen to have around to finance the project. At this point you will have to find solutions that can help you invest in the renovation. This article will indicate you the most common forms of getting money for achieving this goal.
First of all, you need to decide what renovation or remodeling will include. Would it be just bathroom and kitchen, a living room, bedrooms or entire house. Whether you want to install chic white or black marble countertops, use Formica or have elegant marmoglass flooring. Some materials, such as natural stone, tend to be very pricy. Some are less expensive – i.e. engineered stone surfaces, Formica, etc.
Do not forget that this investment will bring more value to the house in case you want to sell it in the future:
Credit cards – they may be very useful when planning to renovate your home but you have to carefully check with the interest rates because getting a credit usually comes with higher rates. If repaying high monthly rates is not a problem for you, then you can resort to this solution. If not, you should better stick to buying material with your credit card and think of another method to finance your home renovation expenses.
Bank loans – they are a better option as compared to credit cards because they offer lower interest rates at fixed monthly repayments. Not to mention that you have the possibility of negotiating these payments in case you confront with financial hardships at a certain moment. Providing collateral for the loan will also bring your lower rates and in case you have home equity built already then, bank loan can be the best financing option.
Personal lines of credit – they come as an in-between type of financing in that they carry rates that are between the ones offered by credit cards and bank loans. As to the repayment option, these lines of credit come with more flexibility and for this reason many home owners resort to this type of financing. It is important to note that with this credit you can either pay the minimum or the balance in full without any penalties.
Remortgage loans – these ones are ideal for those home owners who are engaged in a mortgage repayment plan that is no longer an option to repay due to current financial hardships. If you are unable to repay the mortgage with its high rates, you can search for lenders willing to offer you a remortgage plan with lower rates meaning that you can replace the current repayments with lower rates.
However, remortgage are more suitable for larger renovations , while all the rest from above can be seen as financing options for smaller types of home renovations.