Are you considering a major Home remodel project ?

One more thing to consider along with the type of tile for the bathroom, wood floors or carpet etc. etc. is, how will you pay for all of this.

 

If your rich Aunt Fannie passed away and left you a pile of cash you may want to spend some of that on a remodel project. If that is not the case you are going to have to consider other options that will cover the costs of renovating your home.

 

Here are the most typical ways most homeowners decide to pay for their home remodel projetcs.

 

Refinance your existing Mortgage

It is possible that at this time in the life cycle of your home refinancing is a good idea. If you plan on staying in your home this may be a solid option to cover the costs of a home remodel.

 

Obtain a Home Equity Line of Credit

In some cases it does make sense to use your home’s value to borrow money against it to put dollars back into your home, especially since home improvements tend to increase your home’s value. A home equity line of credit is more like a credit card than a loan. Once the line of credit has been approved, the homeowner decides if and when to use the money and can withdraw it from the account as needed. 

 

Take out a home Equity Loan

This is a little different than a Home Equity Line of Credit. A home equity loan is like a 2nd mortgage on your property. A home equity loan is like a traditional loan. It is a second mortgage that can be lumped together with your first mortgage for one easy monthly payment under a fixed interest rate. A home equity loan can also be kept separate from the mortgage and paid off earlier. 

 

Tax Returns.

We have covered this in the past as well. Using a tax return assuming it is big enough to cover the costs of your renovation can be a viable alternative to finance your remodel project. Any time you remodel your home it has the potential to add value making your home worth more. The less you have to pay in fees and interest the better off you will be in the long run.

 

Use a Credit Card?

This may seem like a crazy option but every alternative has it’s strong points. Even though credit cards sometimes come with high interest rates you may benefit from a large amount of rewards points getting cash back. If you have a card that you pay off monthly it would act like a short term loan that actually pays you back.

In any case these are just a few methods for covering the costs of a home remodel project. It really is up to you. Always keep in mind the return you will get back when you sell the property vs the up fron costs for the project.

In the Twin Cties Minneapolis Saint paul area CT Construction is a trusted name in Home Remodel Projects. The crew at CT Construction can help you plan design and execute your home remodel project.

Happy Remodeling!

 

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