It is time, you just can’t stand looking at it anymore, or the house needs to be remodeled for an aging parent that is moving in, or you know that there is no way that it can make it though another winter or summer. Unfortunately, you might not have enough in your savings or checking account to cover the cost or maybe you wish to hold onto that money & go with an option that might help lower your taxes. Let’s look at a few of the traditional means of financing available to you.
Home equity line of credit (HELOC): A HELOC is based off the value of your house minus the amount owed on the house. Basically, this is like a credit card where the payment terms & amount available depend on how much you use. Most banks at this time have frozen or even dropped this option, but it may still be available to you. The only limit to this type of loan, is the amount of equity in your house. �
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Home equity loan: This is basically a second mortgage, where you can use the funds to remodel with fixed repayment terms. The only limit to this type of loan, is the amount of equity in your house. �
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Refinance: There are numerous refinancing options available where all your mortgages are redone and placed into one new mortgage. Additional equity can be rolled into a cash out feature, which you can then use for your remodeling project. Some refinancing can include proposed remodeling projects which will increase your property value & the amount you can borrow. The only limit to this type of loan, is the value of your house. �
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Personal loan: A personal loan is not tied into your home, but may require some other collateral unless you have a high enough credit score. This is one of the most expensive loan options available, due to higher interest rates & does not qualify for any tax reductions.
