Everybody knows that remodels cost money. And, typically, the more rooms you renovate, the higher the price. Some companies will resort to price gouging at every stage of the project. We recommend avoiding those companies and choosing someone who will partner with you from the beginning of your project, communicate throughout the process, and stay within your budget while also delivering the beautiful, quality home remodel you requested.
That said, you might not have the cash you need to pay upfront for the remodel you want. That’s why there are financing options. Even if you are lucky enough to have 100% of the budget in hand, there are benefits to financing a home remodel.
A Few Benefits to Financing a Home Remodel
As long as you make your payments on time, you can build credit while being able to undertake large projects that quickly make your home more liveable and ultimately increase your home’s value.
Some home improvements can provide as high as a 70% return on investment, but that figure can vary significantly depending on your specific type of project.
To generate the highest ROIs, consider kitchen and bathroom remodels, new and upgraded flooring throughout the home, window replacements, exterior repairs or improvements, wood deck additions, and transforming existing outdated design into more functional space.
It’s good to know that home improvement loans generally aren’t eligible for tax deductions. However, home equity loans can be tax deductible and, thus, a smart option for funding a home remodeling project. Borrowing money against your home’s existing value puts dollars back into your home—and could in turn create even more value and equity.
If you have your eye on a fixer-upper, you can roll the purchase price and the renovation costs into a single loan. A combo like this can reduce stress and make monthly payments more manageable.
Home Remodel Financing Options Are Everywhere
If you’re looking to finance your home remodel, there are many options available. You can talk to your local bank or financial advisor; even credit card companies run special offers that might work for you.
But according to a recent article in The Wall Street Journal, credit cards usually have high interest rates that are likely to get you into debt—and loans from family aren’t always as smooth and friendly as they might sound.
Instead, consider these other financing options:
- Home Equity Loan
- Home Equity Line of Credit (Heloc)
- Personal Loan
- FHA-Backed Loan
- Cash-Out Refinance
The WSJ’s article “How to Pay for a Home Renovation” lists the pros and cons of each of these options, provides a calculator tool to run numbers, and offers the current rates for several top banking institutions.
Do More with Straight Line Construction
Straight Line’s simple financing process can help you love where you live. Don’t settle for a cheap contractor or downscale your dream remodel. Achieve the home you’ve been dreaming of with our no-nonsense financing from Synchrony.
You’ll know whether your financing is approved in as little as 30 seconds after you submit our online form. This means you’ll have a great idea of how to set your budget before your free consultation or visit to our showroom.
You can apply your financing towards any of our home remodel and construction services, as well as our range of quality construction supplies:
- Quartz and Granite
With us, you can finance your home remodel with as little as 0% interest for 6 to 12 months. The approval process is fast, safe, and private. Click to learn more.