Rising inflation and struggling supply chains have both hurt the renovation industry. Whether you just need to replace an appliance or want to completely redesign your home, chances are you’re wondering about the costs and how to fund such a project. Even if you don’t have the cash now, here are four different ways for you to help fund your dream home!
1. Get a Cash Out Refinance
Do you have equity built up in your home? If you’ve been making your mortgage payments consistently over a period of time, you could be sitting on a treasure trove of equity! Getting a cash-out refinance allows you to access these funds and use them as you see fit, including home renovation projects. Refinancing into a lower interest rate can also save you hundreds or thousands over the life of your mortgage, putting more cash into your pocket each month. To determine if refinancing is right for you, compare today’s mortgage rates with your current mortgage rate. If the mortgage rate you’re paying is higher than what lenders are currently offering, then chances are, refinancing is right for you!
2. Get a Personal Loan
If you already have a low mortgage rate, or if you’re not interested in refinancing, then getting a personal loan can be another great way to get funds for a home renovation. Personal loans have a wide range of loan amounts, rates, and terms to fit your unique situation, and you can start comparing personal loan lenders here with no obligation!
3. Get a Reverse Mortgage
Only available to homeowners who are 62 years of age or older, reverse mortgages can be another great way to tap into your house’s equity. If you’re a senior citizen and own all or most of the equity in your home, you can utilize a reverse mortgage to gain access to funds without worrying about a monthly payment to a lender. That’s because reverse mortgages are a loan that only have to be paid back when the last borrower dies or moves out of the house. If you want to renovate your house into the perfect retirement space, consider if a reverse mortgage is right for you!
4. Start Saving
If you don’t have the funds for a home renovation now, it’s the perfect time to start saving for a future home renovation! Opening a dedicated savings account can be a great way to set aside money for future goals as well as earn additional money in interest. Compare top savings accounts to find one with a high APY and other perks such as no fees, no minimum deposit, and cash bonuses. Another option is opening a Certificate of Deposit (CD) account, which tends to have an even greater APY, but often has a minimum deposit amount and a minimum term length during which your funds need to remain in the account. (So CDs can be great for saving for future goals, as long as you’re confident you won’t need the cash in the interim, while Savings Accounts have more flexibility.)
No matter which route you decide to take, don’t give up on your dreams of renovating your house into a perfect dream home! Many renovation expenses can increase your home’s overall value, which will be a benefit if you ever decide to sell. Plus, renovations that are determined to be energy-efficient can even be tax deductible! Consider if any of the above tips can help you afford a future renovation for your home.
