3 times you should get a home improvement loan
Is the renovation loan right for you? In these situations, it might make sense.
If you are looking to renovate your home, you might not have the money to pay for this project. This is especially true if you’re talking about a major business, like a full-fledged kitchen remodel or the layout of a patio and pool.
The good news is, you don’t have to pull out a credit card and rack up tons of interest charges on it to cover your next renovations. Instead, you could take out a home improvement loan. Many of these loans offer competitive interest rates to make financing your improvements much more affordable.
To help you decide if borrowing money to finance renovations is right for you, here are three times when it makes a lot of sense.
Start your journey to financial success with a bang
Get free access to the selected products we use to help us meet our financial goals. These fully vetted choices could be the solution to helping you increase your credit score, invest more profitably, build an emergency fund, and more.
By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
1. Your renovation will increase the value of your property
Putting money in your home today could mean increasing its resale value over time, so when you do sell it, you’ll get a higher asking price. For example, if you borrow $ 40,000 to renovate your bathrooms, you could get this money back when you sell or near your house. In some cases, you might even get more money back than you invested.
2. Your renovation will greatly improve your quality of life
Borrowing a lot of money to pay for home improvements that will only have a minor impact on your daily life just isn’t worth it. On the other hand, it is It is worth taking out a renovation loan if the project in question will make life in your home more pleasant or make your home much more functional for your family.
Ascent’s selection of the best personal loans
Are you looking for a personal loan but don’t know where to start? Ascent’s choices for the best personal loans help you demystify the offers available so that you can choose the one that best suits your needs.
See the selections
Suppose your kitchen and living room are overrun with toys because you don’t have a playroom dedicated to your children. If you spend the money to finish your basement and convert that space into a playroom, your kids will have a space to relax and you won’t have to spend your days tripping over blocks and stabbing them. feet on LEGO pieces.
3. Your renovation will make your home cheaper to maintain
In some situations, paying for home improvements will make your home less expensive to maintain in the long run. Maybe you have a really old heating system that not only leaves you cold during the winter, but costs you hundreds of dollars in utility bills from November to March. If you upgrade your heating system to a more energy efficient unit, your utility costs could go down so that you end up recouping some or all of your investment. It will also be nice to have a more comfortable indoor environment where you don’t tremble all the time.
A home improvement loan is not your only profitable option for paying for home renovations. You can also consider doing a cash refinance, where you borrow more than your existing mortgage balance and use your remaining money to cover your renovations. But in any case, it’s worth looking for home improvement loans and seeing what deals you get. You might find that going this route really makes sense, especially if you don’t want to have to swap your existing mortgage for a new one.