Financing Options for Major Home Renovations

At Better Place Remodeling, we work with financing companies so our customers have access to loans that fit their needs. Everyone deserves the chance to remodel. So, start your home renovations today.

We at Better Place Remodeling know that people want to improve their homes but may not have the funds available. We help them get the improvements they’ve been dreaming of, at no cost to them! That’s why we offer financing options so that you can get the kitchen or bathroom of your dreams without having to wait for payday. We’ll briefly discuss your options below:

Home Equity Loans

  • Home equity loans allow homeowners to borrow against the value of their property. These loans are popular because they allow people to pay for home improvements, such as adding a deck or new siding. They can do that without completely draining their bank accounts. If you’re thinking of taking out a personal loan, it’s important that you understand the pros and cons.

Personal Loans

  • Another type of loan that homeowners can use to finance their home improvements is the personal loan. Personal loans are different from home equity loans in a number of ways. For example, they generally require a down payment, have lower interest rates than credit cards or other types of loans, and allow you to pay off your balance more quickly.

Credit Cards

  • Using a credit card to pay for home improvements is one way that homeowners can improve their homes and add value. However, it’s important to remember that credit cards have high-interest rates and should be used only as a last resort. It may be tempting to use a credit card instead of savings or other funds for a home improvement but think twice. The interest you’ll pay on your balance will quickly add up and make the project far more expensive than it needs to be. Even if you can afford it at first glance! If you are having trouble making loan payments, consider getting in touch with your lender to see if switching loans or refinancing would be an option.

Lines of Credit

  • For homeowners who don’t want to use their home as collateral, a line of credit can be an option. Line of credit loans can be used to pay off high-interest debt or make home improvements. If you are considering a line of credit, be sure to shop around. Rates and terms can vary widely, so it’s important to make sure you’re getting the best deal possible.

Refinancing your mortgage

  • You can also use a mortgage refinance to pay for home improvements. When you refinance, you take out a new loan that replaces the current one. That’s usually at lower interest rates than your original mortgage. You can get a lower interest rate on your new loan and thus increase the value of your home, saving money in the long run.

Home improvement grants

  • If you’re having trouble coming up with the money for home improvements, look into getting a grant. It’s a form of financial aid that doesn’t have to be repaid. There are many different types of grants available based on your income level, age, and other factors. Grants can help pay for everything from roof repairs to new windows. You can also look into getting a low-interest loan, which will allow you to pay back the money you borrow over time. This is usually an option only if you have good credit and are already planning on buying or refinancing your home.

However, these financing options may not be right for everyone. So when you’re wondering how to finance a home remodeling project, consider the following factors:

What kind of loan do you have?

If you take out a second loan to pay for something else when you already have an outstanding mortgage, your total amount of debt could increase. It can make it difficult or impossible for potential buyers to purchase your home if they want to live in the house sometime later. Home equity lines of credit let homeowners borrow against the value of their property without taking on additional liens or making weekly payments like some other forms of financing.

How much do I need?

Before making any commitments, you can get estimates from several different contractors and compare their prices to get a general idea of what everything will cost. When planning a home improvement project, you might be eligible for grants or low-interest loans that can help lower the overall cost of borrowing money.

What are the benefits?

Home improvements can increase the value of your home and help it sell faster if you ever decide to move. Lenders also like borrowers who have made such improvements, so you may be able to get a better interest rate on your mortgage. And potentially qualify for other types of loans as well.

If you’re interested in financing your San Diego home remodeling project, contact us today.