A home improvement loan can be a great option if you’re looking for additional cash to complete a renovation project. It can also provide the added benefit of increased value for your home. However, it’s important to carefully weigh your options before applying for a home improvement loan.
Homeowners are expected to spend more on home improvements in 2021 than they did in 2018. In fact, the average home improvement spending is now the highest it has been since Angi began tracking the market seven years ago.
The best way to ensure you have the money you need is to have a detailed plan before starting any remodeling project. You’ll also want to ensure that you are working with a licensed contractor who has the proper insurance.
A home equity line of credit can also be a useful source of funding for any home improvement project. If you’re using a home equity line of credit, you should know that interest rates are often higher than other financing options.
You may want to consider other loan options for projects that aren’t short-term. Some people choose personal loans, which have higher interest rates but don’t have collateral requirements. Another option is a home improvement credit card. These cards typically have introductory 0% APR periods for up to 12 months.
Adding extra bedrooms and bathrooms can increase the value of your home. But the cost of these upgrades can be prohibitive. To make it easier to budget, decide how much you can afford to spend on a project, and then leave a bit of space for growth.