Tips For Financing Your Home Improvements

If you are a residence of Vancouver, there are a lot of reasons that may make you undertake home renovations. Many Vancouver homeowners want to modernize as well as update the look that their homes have and this is mostly done for their own comfort and enjoyment. Some may view their homes as an investment and most would want to increase the resale value of their homes once they sell them.

financing home renovationsToday, some homeowners are also making renovations so that they can increase the energy efficiency of their homes and this is a good long term savings plan that helps in conserving energy consumption and overall cost.

As for any reason that the homeowner may choose, the financing options that one chooses heavily depends on the size of the project as well as the current financial situation that the homeowner is in. The financial options may vary from dipping from ones pocket to saving or paying cash for the renovations.

Here are some tips for financing your Vancouver home renovations, both large and small:

  • Self Financing– This options makes sense if you are undergoing a small renovation project. It is also a do it yourself job and you can pay yourself making it a feasible option.
  • Credit Cards– One can charge renovation expenses to a credit card. This may not be necessarily a good idea since the cards have a higher interest rate and thus have limited value in home renovation projects which can lead to you damaging your financial health if there happens to be unexpected overruns.
  • Loans and Lines of Credit– These are popular options and they offer interest rates which are substantially lower than those that are charged from credit cards but they are also higher than those of home equity loans.
  • Home Equity Loans– These are by far the most popular options many homeowners opt for since these loans allow you tom leverage the equity of your home. They are in most cases used to fund major renovations because they offer the capital required at a much lower interest rate.
  • Mortgage Refinancing– This options enables homeowners to spread payments over a long period of time and at the same time enjoy mortgage rates that are lower.
  • New Purchases– This includes having to hire a mortgage broker who will help you shop around for the most favorable rate.
  • Contingency Funds– These are funds that are saved for contingency funds in case of overruns or unforeseen expenses.
  • Consult with Experts– Always consult with The Reno King – Vancouver home renovation experts, since they will give you the accurate costs of your renovations.

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| April 15th, 2015 | Posted in Finance |

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