2018 is considered the best year for home remodeling in the United States, with Americans expected to spend around $340 billion in upgrades to the properties. These figures are up from last year and the year before, which means there is a substantial move to improve the property you’re in as opposed to just shopping around for a new one. With the wealth of great property upgrades out there, it’s no wonder homeowners are willing to shell out cash for these upgrades. But what happens when the savings run out? Discover simple loans that make these renos a breeze.
Consider 0% APR Credit Cards
Credit cards have come a long way since being one of the most financial instruments in the wallet. The increase in credit card companies have seen some tough competition and each company tries to put more benefits on the table than the last, in the hopes of snagging a customer for life. One of the latest credit card benefits to hit the table is 0% APR. Homeowners who merely need bridging finance to tide them over for a short period will benefit from this option. In order to get the most out of it, however, the consumer will need to make the full payment before the 0% APR period expires. Homeowners who can afford to repay within 6 months to 2 years (depending on the 0% APR period), can opt for this option.
Use The Mortgage To Its Full Advantage
Those who happen to have their property for a period of time, or simply paid in extra over the repayment term may have equity in their property. Depending on the amount required for the reno and the repayment terms, applying for a readvance on the existing mortgage is often a cheaper way to finance a reno. That is if the repayment period is short and the interest rate is agreeable. Those who are past retirement age can also consider releasing some equity from the home, especially, if leaving the property as a legacy to the children is not a priority. This tends to be an option for those who may need up to 10 years to repay.
Purposely Designed Personal Loans
There are a number of financial institutions that offer personal loans, and some even tailor their options to meet the needs of their clients directly. Home renovations are often one of the main reasons homeowners take out personal loans, and with good reason. These loans are often unsecured and in many instances pay out the same day of approval. For those itching to get on with their renovations, this is a popular choice. This is a great choice for those who can repay within 2 to 5 years.
There are a number of options open to homeowners when it comes to financing their reno, and these are just a few. The size of the loan, budget for repayment, and period in which the loan can be repaid will determine the best option.