Home Improvement: Pros and Cons of Various Financing OptionsApr 02, 2020
Your budget often has an impact on the result of your home improvement project. From your choice of materials to the overall design, it almost always comes down to the cost. Ensure that you have enough funds to your remodel and a little extra for any unexpected work or repair that needs to be done.
Don’t worry because you don’t need to tap into your savings or deplete it in order to pay for home improvement. You can benefit from a number of financing options, such as home equity loans and HELOCs. Home Wizards, one of the best deck builders in the area, discusses your options and their pros and cons below.
Home Equity Loan
A home equity loan is one of the most commonly used methods for financing home improvement projects. With this type of loan, you can borrow a lump sum amounting up to 85% of the value of your home. It’s generally a safe choice too because it comes with fixed interest rates and fixed repayment terms. These enable you to plan your future expenses accordingly.
Financing Offered by Contractors
Several home remodelers offer their own financing options. These are generally convenient too because you’ll be dealing with them directly. This means faster approvals and flexible terms. Home Wizards Remodeling can offer financing options too. We offer several options from 0% and up depending on the time frame you prefer. Get in touch with us, and we’d gladly assist you with your needs.
A HELOC, or home equity line of credit, provides you a line of credit that you can borrow against. It’s a little similar to how credit cards work. You only need to pay the amount that you have actually used. However, unlike credit cards, there is an initial draw period, typically 10 years, after which you’ll enter a repayment period. During this period, you’re not allowed to borrow any more money.
Home Wizards has expertise in various home improvement services. Apart from being a trusted Siding Installer, we are also one of the most reliable custom porch contractors in the area. Call us at (770) 998-1809 or fill out our contact form to request a consultation.