Looking for creative ways to fund home improvements? Whether you’ve are just starting your journey into home ownership or you’ve lived in your home for decades, the idea of improving and customizing your home to your preferences is exciting…and daunting. The exciting part comes without question, but the daunting part is funding the improvements.
If you are looking for the best ways to fund home improvements, your are not alone. Here’s a look at some creative ways to get those improvements done without spending sleepless nights.
SAVE AND PAY CASH
If the home improvements you have in mind are not major remodels then this may be a great option for you. Create a Home Improvement Fund where you can stash away the extra cash, then start saving. Come up with inventive ways to make/save money and run with it.
- Eliminate waste in your budget. Cancel auto pays for things you don’t need. Drink coffee at home. Think before you buy!
- Clean out your house and have a yard sale
- Sell more valuable items on e-bay or on-line on Facebook Marketplace or other local on-line selling apps
- Part with gold/silver jewelry and items that you no longer have a use for
- Get a side hustle
TAX REFUND
Don’t waste your tax refund. Have a plan before it hits your bank account so you are not tempted to waste your hard earned cash. Remember, a tax refund is not a gift to you from Uncle Sam. It is Uncle Sam returning the money you overpaid him. Resist the urge to splurge on something that won’t last or give satisfaction over the long haul. Whether your tax refund is big or small, there are lots of home improvement projects that will give you bang for your buck.
HOME EQUITY LINE OF CREDIT (HELOC)
A HELOC is basically a line of credit that allows you to borrow money against the equity in your home. When you apply you will be given all the specifics such as:
- how much you can draw or borrow
- the length of the terms (typically 10 years)
- how/when it will be paid back
A HELOC is serious business and should never be used to finance vacations or things with depreciating value like cars. Also, if you are planning to sell your home in the near future then a HELOC is NOT for you. HELOCs are best used to build wealth, like home improvements or renovations. Or to bolster your emergency fund.
Be sure you shop around for the best rates and that you understand completely all of the details of the loan and payback. A HELOC can be the perfect vehicle for those who use it responsible, but remember that your home is on the line if you can’t pay back what you owe.
HOME EQUITY LOAN
A home equity loan is essentially a second mortgage on your home. You are paid out in a lump sum and make payments monthly just like your first mortgage. This type of loan has its drawbacks, so be sure to research it thoroughly before deciding to go this route. For some, this is a good way to secure money for home improvements and to consolidate debt. For more information on the pros and cons, see what Lending Tree has to say.
FINAL THOUGHTS
There are so many ways you can update and improve the value and looks of your home! You can take small steps that are budget friendly or do major home renovations. To help you decide what fits your budget and find things that inspire you, we have over 60 posts on this website to help you with ideas for any undertaking. We have consolidated a few in Tips and Ideas for Improving Your Home. Click on over and read a few!!
Give Britt a call at 803-603-6486 or e-mail ellisb@colatownpainting.com if ColaTown Painting can help you with your painting projects. Always a free, no-obligation estimate and guaranteed satisfaction!
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