When you make the decision to remodel your home, it will be both exciting and a little frightening. Your home will have a whole new look, however, finding the money to pay for it can be daunting. It may seem confusing, however, there are several ways to finance your home remodel.
- Home equity loan – each year you own your home builds equity; consulting an equity lender will give you the amount of the equity. It is important to find the lowest loan rates.
- 401k loan – if you have a 41k through your workplace, you can borrow against it for your home remodel. You will have to pay it back, however, the loan company will usually take a percentage out of your paycheck each week until it is paid in full. Keep in mind that the interest may be high so check it out thoroughly before making a decision.
- Savings – using your savings should be one of the last options to consider; home remodels can be costly, and you do not want to leave yourself house rich, cash poor.
- Borrowing from friends and family – no one wants to borrow money from friends and family, however, it if is your only option, make sure you create a schedule for them to pay them back.
Once you have the financing in place the fun part begins! Designing your remodel will give you a chance to create the home of your dreams!