what is the best way to finance home improvements?
cara asked:
I’m just wondering if we should do a home improvement loan, refinance our mortgage, do a home equity loan, etc.
We are looking at doing siding, some windows, soffits and fascia, etc.
I’m just wondering if we should do a home improvement loan, refinance our mortgage, do a home equity loan, etc.
We are looking at doing siding, some windows, soffits and fascia, etc.
May 1st, 2009 at 11:31 pm
If they are major improvements, refinance at a lower interest rate taking enough to cover remodeling expenses. If minor, consider a second mortgage or signature loan.
May 3rd, 2009 at 7:38 pm
If the home improvement is one that will up the value of the home considerably (redo kitchen, finish basement) use a home equity loan, just make sure you don’t over exert yourself financially.
For minor home improvements (paint, moulding) save up to do the repairs or do them in small steps.
The best way to finance home improvement is to not finance them but to pay for them up front. This isn’t always an option so go over yours carefully and if you use your house as collateral be sure to justify the extra costs (construction costs and insurance costs).