Home Improvement Financing

Home Improvement Financing

Renovating your home can be a very smart investment, but is not an easy task when the budget is low. Below are a few options, advantages and disadvantages for an investment of this kind.

There never was such a good time to start to remodel your home. With the housing market crisis and firms of construction and decoration suffering the indirect effects, the total cost of a remodel in your home is drastically reduced.

But, crisis and issues aside, you still have to find the money to pay for the work.


If you have money, fine. Especially for small projects, cash is the best option. But if you have your money in a savings plan, to cash out that money can be a bad option. Think that you will lose interest and compare with the interest you must pay to borrow money. In some cases, getting a loan can pay off.


Increasingly popular, credit cards can be the solution to finance your project. As advantages, you have the opportunity to pay the amount you want every month, often without interest. And if your credit limit is high enough, you don't need to wait for your credit. The credit card is also a convenient way to buy materials and keep track of the total you have spent. On the other hand, there is a price for all these facilities. Interest on these loans are usually much higher than normal interest on the loans and if you reach the limit of your credit card that will create many problems. Therefore, look well and plan your future. So that if you have a bad month, you can pay your credit card.

Bank Loan

A loan is the most direct way to finance your home renovation or remodeling. A lump is withdrawn from your bank account every month or weeks until the total sum is paid to the bank. If your budget allows, choose weekly payments. The interest rate will be lower.

Personal Loans

Very trendy these days, personal loans are assigned in a quickly and easy way. Generally the interest of this type of credit is higher than bank loans but you will find it easier to pay.

Revaluation of Mortgages

If you made a loan to buy your house, you can request a reassessment of your mortgage in order to access up to 80% of the value of your home. This type of financing implies that the benefits of your mortgage will be extended and it is possible that you have legal costs to change your contract.

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