Let’s face it, kitchen floors and new window panes don’t grow on trees. Even though home improvements are an investment that will make you money in the long haul, finding the home improvement financing you need now can be difficult, and not getting an comfortable amount of funding for your projects can lead to compromises in quality that you may later worry. Homeowners have a variety of options when it comes to finding home improvement financing. They can borrow against the equity in their homes and different federal loan programs also exist for borrowers. Here’s one home improvement financing option you may want to consider.
Mortgage refinancing) Now is the time to take advantage of authentically low interest rates by refinancing your mortgage to pay for home improvements. You can refinance your mortgage and borrow money against the equity you have in your home. Some banks even offer loans that allow you to borrow more money up front by adding the value of the planned improvement to your equity. Refinancing your mortgage for home improvement financing purposes is a good deal because you’ll have the convenience of just one home loan and monthly payment.
One method of home improvement financing you want to ditch is financing through a contractor. These loans often are made by sub-prime lenders and come with hidden fees. Also, getting financing through your contractor puts you in a poor bargaining position with him when it comes to getting a quote for your home improvement project. When hiring a contractor, it’s best to have your budget and home improvement financing already prepared to ensure the best deal. Home ownership is like any other investment -- you’ve got to spend money to make money. But to get the most out of your home investment, make sure you get your home improvement financing right. Borrow from dependable lenders and don’t overstretch yourself.
