Top 6 Ways for Financing Your Home Renovation

If you are a Metroplex homeowner thinking about Dallas home renovations, you may be wondering how you can finance the remodeling project of your dreams. You may be surprised at how easy you can find or obtain money to complete major remodeling projects in the Dallas/Ft. Worth area. While most people can finance small projects readily, consider these ideas for larger remodeling projects.

Cash

The easiest way is to pay with cash that you have saved up. Completing a remodeling project may put the money to better use depending on your situation than letting it sit in a savings or checking account where it is drawing little or no interest. Most remodeling projects will increase your home’s value from 56% to 75% when you decide to sell your home.

Loans From Other Accounts

You can withdraw money from your 401K or other retirement accounts. This usually comes with a penalty, so consider the tax ramifications. Additionally, your account will be worth less, but you may be able to replace the money before you retire. Meanwhile, you have a beautifully remodeled home to live in.

Home Equity Line of Credit

The average home in Dallas has increased in value by 78% over the last five years. Therefore, you may be able to borrow against the home’s value. Before choosing this option, ensure you have a plan on how you will pay the money back, or the financial institution may end up owning the home. Additionally, these loans have variable interest rates, so it may pay to shop around.

Cash-out Refinance

A cash-out refinance can be an outstanding option depending on your current mortgage’s interest rate. A financial agent writes the new loan for the amount of money you still owe on the home and the remodeling project cost. This can be an excellent option for homeowners who agreed to their first mortgage with higher interest rates because it pays off the first mortgage. Again, shop around to get the best deal because you are not required to use the same mortgage company.

Personal Line of Credit

You may be able to talk to your financial institution about taking out a personal line of credit. Then, use the money you and your financial institution agree upon to pay the contractor. This usually works best for people who have a good credit rating, so run your rating before asking for the loan, and take care of any delinquent or fraudulent information on your report.

Credit Cards

While it is often the most expensive route, you may have room on your credit cards to pay for the remodeling project. Ensure you can pay the higher payments each month before going this route.

Regardless of How You Decide to Pay for Your Remodeling Project, Contact Shepherd Renovations!

We are rated among the best Dallas contractors to complete an exterior renovation or an interior renovation project. Our experienced crews guarantee beautiful results because we are dedicated to high-quality craftsmanship. Contact us today to get placed on our calendar quickly or for more information.