Considering a home improvement project can help increase the value of your home. But how should you finance your improvements?
You may not have all the cash on hand to fully fund a home improvement plan. The costs related to securing a contractor and buying materials can quickly drain your savings. To have financial flexibility and time to pay for your project it might make sense to use a Renovation Mortgage, Home Equity Loan or Line of Credit.
A renovation loan can be a great tool to help you achieve your goal of a dream home. The loan provides funds based on the estimated value of the home after improvements would be completed.
With a home equity loan or line of credit, you borrow against the value of your home less the amount of the existing mortgage (in other words, the equity). A home equity loan or line of credit uses your home as collateral and may provide you with cash at relatively low interest rates with certain tax advantages, unavailable with other kinds of loans. Check with your tax advisor for details.
Learn more about financing your home improvement or renovation project.