How to Finance a Home Improvement Project

Home improvement

The home improvement industry is one that is expected to grow in the coming years. Home prices are rising, and homeowners are investing in renovation projects. In addition, home improvements are typically tax deductible. However, it is important to have a good plan for your renovation project and to make sure that it pays for itself.

A recent survey by Axiom, a Minneapolis marketing firm, surveyed consumers to learn what they are doing to improve their homes. Many respondents said that they planned to do more than just spruce up the place. They are also planning on hiring professionals to help them in various ways.

One of the most popular projects is installing a new front door. The number of people putting up fences is also on the rise. This year, more than a quarter of survey participants plan to install a patio.

Another popular project is to renovate the kitchen. Although a kitchen remodel may not be a top priority for most people, it is a smart investment. Invest in a good-quality kitchen, and you will have more resale value in the future.

There are several options for financing a home improvement project. Some homeowners opt for a home equity loan. This type of loan is secured by the property itself, and the borrower can borrow up to 85% of the home’s value. Depending on the borrower’s credit, a personal loan could be a better option. Personal loans are not subject to collateral requirements, but they come with higher interest rates.

Other types of financing include a home equity line of credit (HELOC), or a mortgage. These are installment loans that are repaid over five to 30 year periods. The APR of these loans range from 16% to 24%. When comparing loans, it is best to shop around.

Another option for financing a home improvement project is to use a credit card. Many of them offer an introductory 0% APR period. Most cards require a minimum of 12 months for the introductory period. You can then use the money for a paint job or a new appliance.

Home improvement can include everything from installing new siding to building an addition. It can also involve work outside the house, such as painting, siding, septic systems, driveways and garages. Also, there are a few other categories of projects, such as maintenance, safety and security protection, and energy efficiency.

Whether you choose to take out a home equity loan, a credit card, or use your savings, make sure you research the project before beginning. Check references to ensure that the company is reputable, and keep an eye out for any scams.

The home improvement industry is growing, and it is important to plan ahead and choose wisely when deciding what to do to your house. Investing in a new front door can be one of the easiest and cheapest ways to give your home a facelift. As you get more comfortable with your home, you will be more likely to make other improvements.