Whether you are looking to renovate only a part of the house or the entire house, understanding your budget and finding the right funding source are key to making sure your project goes smoothly.
In this article, we will discuss how to fund a home renovation project by considering various options such as a personal loan, a home equity loan, a credit card, cash and home refinancing. We will also look at the pros and cons of each funding option. With these tips in mind, you will be able to make the right decision and successfully fund your home renovation project without breaking the bank.
1. Personal loan
2. Home equity loan
A home equity loan is a type of secured loan that leverages your home’s equity as collateral. However, it will only work when you have enough equity in your property and a good credit score. It is worth noting that home equity loans provide lower interest rates than personal loans since they use your home as collateral. Therefore, if you fail to comply with the lender’s terms and conditions, it could lead to the loss of your property.
3. Credit card
4. Cash and savings
5. Home refinancing
[Image source: Photo by Maria Ovchinnikova]
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