Your home is one of the greatest investments you’ll make in your entire lifetime. However, as time goes by, your home may need some improvements to keep up with your needs and the changing times. This is the reason thousands of Americans every year take on home remodeling projects to enhance their property and improve their investment.
Whether you are building a deck, upgrading your bathroom, or giving your kitchen a brand new look, figuring out how your home improvement project will be financed is an important part of the whole process. Unless you’ve happened to stockpile a substantial amount of money saved up specifically for home remodeling—or unless you’re particularly wealthy—you might need to rely on home improvement financing options to complete any projects you’re interested in.
At Thiel’s Home Solutions, we offer attractive financing options for our customers hoping to experience a stress-free home renovation. If you’re interested in upgrading your most valuable investment in the near future, take a look at some of the many ways to complete a home remodeling project, brought to you by our renovation and financing specialists at Thiel’s Home Solutions.
Paying in CashIn 2018, home renovation costs averaged nationally at around $39,211. Figures can range substantially, however, and can climb as high as $130,000 or more if you are aiming for a high-end home remodeling project involving multiple rooms. Of course, the most straightforward way to finance your home improvement project is by paying for it in cash. Although it may take longer and requires patience and discipline, the advantage of this is that you won’t have to worry about monthly payments and interest rates.
If you’re like most people, you’re strapped with enough financial obligations at the moment to consider the idea of adding yet another one to the list. If cash is a viable option, consider using it to make your home remodeling plan an easy and hassle-free project. On the other hand, the obvious disadvantage of using cash is that it will typically take years before you achieve the home that you’ve always dreamed of.
The good thing about securing additional financing through other means aside from your own cash or savings is that you will be able to get on with the project right away. This means that you will get to enjoy the benefits of your improved home earlier instead of waiting to save the amount over time.
Home Equity Loans
If you want to start your home remodeling project faster and you don’t want to refinance your current mortgage, you can get a second home loan or home equity loan.
You will be provided the whole loan amount upfront which you will have to pay within a certain amount of time, typically between 15 to 30 years. When deciding if you want a home equity loan or refinancing, check the interest rates to see which one will cost less.
Refinance Your Mortgage
Refinancing your mortgage is another way to finance your home improvement project and may even result in lower interest rates on your new mortgage. If you have a variable interest mortgage, this gives you a way to convert it into a lower fixed rate.
In this method, the value of your home will be appraised in order to determine how much you can borrow. The amount remaining on your mortgage will then be slashed from the home value, and the remaining amount is the home equity that you will be given. It is recommended to check with multiple lenders to get lower interest rates and monthly payments.
Credit Card Financing
Smaller home improvement projects can be financed using your credit card, albeit at a much higher interest rate than you might feel comfortable with. Late payments or defaulting on credit card payments can also result in penalty fees or additional interest added on to the total—which can make your home improvement project a much costlier project than you’d ever imagined.
Still, for those that can pay off the card in a reasonable amount of time, credit card financing can be a good option. Additionally, homeowners can sometimes use their credit cards in order to gain more points towards rewards and other perks, so it can be a wise investment in the end if handled properly.
It is important to note that not all home remodeling companies provide in-house financing or flexible financing options. When you find contractors that offer in-house financing, make sure that you review the terms and interest rates to avoid unexpected surprises down the road. Thiel’s Home Solutions is one of the companies that provide flexible payment options and financing plans to help homeowners achieve the home of their dreams while reducing the financial burden of expensive, upfront payments.
Your Best Choice for Affordable, High-Quality Home Remodeling Services
As one of the area’s top-rated home remodeling companies, Thiel’s Home Solutions is proud to offer exceptional home remodeling services at affordable prices. Since 1967, our team of professional remodelers and designers have provided our customers with personalized service, expert installations, and top-quality products—making us a trusted expert in the field for all of your home remodeling needs.If you want to learn more about how Thiel’s Home Solutions can help you achieve your home renovation goals, or to discuss possible payment options for homeowners hoping to remodel, contact us today. You can also get started now by filling out this online form to book an accurate, no-obligation price quote and design consultation in your home.
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