If you’ve decided to renovate your home, you’ll need to work out how to finance the project.
Given that most of us have been sheltering in place since March, it’s no wonder that we’re in the mood to renovate our homes. The online remodeling platform Houzz reported a 58% jump in the number of contractors’ project leads this June from the year before. Contractors working in outdoor spaces saw the largest increase, as folks looked to have pools and spas installed. Homeowners also seem far more interested in decks, patios, and landscaping than they were pre-pandemic. Kitchens and baths, traditionally the most popular remodeling projects, saw a 40% increase in demand.
If you’re itching to give your place a facelift, you may wonder about the best way to pay for it. Here are six possible home renovation financing options:
1. Personal loans
Personal loans are available through online lenders, banks, and credit unions. It is not uncommon to find personal loans for as much as $100,000. If you have a strong credit score, you should qualify for today’s attractive rates and terms that suit your needs. Most personal loans are unsecured, meaning there is no collateral for the lender to repossess if you default on payments. That said, don’t agree to loan terms if you think you might default — it can destroy your credit and even land you in court. Here are some of the best renovation loans on the market right now.
2. Home equity loans
Since it’s your home that’s getting spruced up, consider a home equity loan. With a home equity loan, your home acts as collateral, meaning it can be repossessed if you fail to make payments. But that collateral also means you’re likely to score a lower interest rate. Home equity loans are distributed