Financing Your Home Renovations with a Home Equity Loan
For most of us, our home is our number 1 most valuable asset. Conducting a home renovation can both make your property more valuable and make the space more comfortable. However, a lot of renovations don’t come cheap. Before you start going around peeling off paint and tearing down walls, it’s important to consider the financial resources needed first.
If the objective is small and won’t cost you more than what you can pay off in cash, then great! Go ahead with it. However, when the project is something you have to finance over time, it’s important to think about the types of renovations you want to perform, the amount of money you need, and how long you anticipate paying off these costs.
Consider The Total Costs
First, estimate the cost of your renovation and determine whether you need all the money up front or in stages as the job progresses. This will help you decide which financial products are best suited to you. For example, if the cost of the renovation is less than $5,000, you would probably pay with cash or with a credit card, provided you pay your balance monthly.
Expenses between $10,000 and $20,000 may be suited for a line of credit, such as one Leap Financial can offer which also helps tap into a bit of your home equity. This is a more cost-effective way to get the financing you need rather than drawing cash advances on your credit cards.
For bigger projects over $20,000, many homeowners also use the home equity they’ve built up over time to help finance renovations. Depending on the amount of equity you have built up, you may be able to borrow up to 80% of that value with Leap Financial. Since every homeowner’s financial needs are unique, it’s best to meet a qualified financial advisor for individual advice. You can talk to one of our representatives to find relevant financial solutions geared to your goals. Whatever your home improvement dream, we can help give you the confidence to put your plans in motion.