Home Improvement TV shows and 'home makeover' shows have left many people feeling that their home needs to be upgraded or redecorated in some way. Bigger projects, like extending the home to create a guest suite or teenage pad have also become very popular. However, renovations and repairs can cost a lot of money, aside from saving up, where can the money come from?
Different Loans to Finance Home Improvements:
Home improvement mortgage refinance:Refinancing a mortgage to raise the extra cash is an attractive option for many, since the interest rate can be fixed and the repayments can be made over 20 or 30 years. Bear in mind that the monthly repayments will be low but the accumulated interest over time can amount to quite a lot, making the renovations expensive in the long term.
Dealer financing:Some big hardware stores or home improvement stores offer finance to customers. This can be useful as all the items can be bought under one roof, such as kitchen or bathroom items or new doors or appliances. Check to make sure interest rates are competitive.
Borrowing from family or friends:This would be the ideal way of raising the cash. It is possible that family or friends may not even charge interest, but be sure to have a contract in place that everyone is satisfied with.
Personal loan:A personal loan is an amount of money borrowed from a bank, building society or some other lender. A lump sum will be received which will be paid off monthly. Interest rates are subject to market conditions.
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