Exterior home remodeling services aren’t cheap. However, there comes a time when giving your home a facelift becomes a necessity or a long-overdue dream. Figuring out how to pay for renovations can sometimes be paralyzing for homeowners. But you should note that there are different ways you can finance and realize your home improvement goals.
Timberland Exteriors™ discusses some of the most common ways homeowners finance their home improvement projects.
Home Equity Loan
Home equity loans are often considered because of the fixed interest rates and fixed repayment terms they come with. With this type of loan, there are no surprises for borrowers since monthly payments are fixed. It also allows you to borrow a lump sum of money with the value of your home as collateral. However, take note that you can only borrow up to 85% of the value of your home.
Home Equity Line of Credit
A home equity line of credit, or HELOC, works in a similar way as a credit card. It gives you a line of credit that you can borrow against and you only need to repay the amount you actually use. The downside of this is that your payments will tend to fluctuate since these are based on how much you borrow.
A HELOC will also use your home as collateral. Moreover, it has an initial draw period that typically lasts 10 years, after which you’ll have to move into a repayment period. At this point, you can no longer borrow money. If you’re going with this type of loan, talk to your home improvement contractor and plan a timeline for the different projects you want to do.
Personal loans are a popular option for homeowners too. They have fixed interest rates, fixed repayment periods, and fixed monthly payments — much like home equity loans. Another advantage of this type of loan is that it doesn’t require any collateral. If you fail to repay, your home would be safe. However, this could negatively affect your credit score.
Timberland Exteriors™ is not your average general construction company. We provide first-rate services to our clients regardless of the kind of job we have to handle. And with our financing options, you can better focus on transforming your home without worrying about how to pay for it.
To know more about our financing options, call us at (952) 373-5145 or fill out our contact form. We serve customers in Minneapolis, MN, and nearby areas.