Many people have the dream of living in their dream home. You may have bought a property that is less than ideal with the idea of renovating it into the perfect home for you and your family. However, life being what it is, these renovations might be taking some time to get going, especially if you are overwhelmed by the potential costs. However, there are plenty of financing options to help you out. So, whether you want a new state of the are kitchen or an indoor cinema, here are three ways you can finance your dream home renovation.
1. Mortgage refinancing
If you already have a mortgage on your property and have made some repayments on that, you could consider refinancing your house. This is when you transfer your mortgage to another mortgage loan refinancing company, thereby releasing equity on your property that you can use to finance your renovations. Mortgage refinancing is a particularly good option if you’re planning on your renovations, increasing the value of your property. This is because mortgage refinancing is a big commitment, and you want to be certain that your investment is worthwhile. You also want to be sure that you can continue making your mortgage repayments years, perhaps even decades, into the future, when you may no longer be working and drawing a full pay packet. Falling behind in mortgage repayments can cause huge financial hardship and could even result in you losing the dream home you’ve worked so hard to achieve.
2. Personal loan
If you’re overwhelmed by the idea of refinancing your property, taking out a personal loan could be another financing option for your home renovations. With a personal loan, you borrow a set amount of money, usually at a low-interest rate, which you then repay in manageable monthly installments over a specific payment period. You do not have to specify precisely what you are spending your personal loan on, making it a popular choice for home improvements when you need to pay for things as diverse as a new shower to an electrician and nails. However, as with a mortgage refinance, make sure you can afford the monthly repayments of your personal loan, as failing to make timely repayments and affect your credit score and have serious financial repercussions.
3. DIY with a credit card
If you want to keep your home improvements as affordable as possible, you could do as much of it as you can by yourself, using your credit card to make smaller purchases like tools and equipment. For a real team-building exercise, you could even get your family and friends to help out, something which is particularly useful if, say, your friend from the bar is a qualified electrician, or your brother-in-law is particularly handy with a drill. However, there are some renovation jobs that you should always get an expert to do, such as anything plumbing, electrical, or structural. Doing these by yourself could result in a scruffy and dangerous outcome.