How to Finance Home Improvement
Home improvement is a good way to boost your home’s value. It can also be a tax deduction. While most projects are deductible, some are only deductible when you sell your home.
When planning a home improvement project, research the cost of your project. This will help you decide whether you need a loan. You can use your existing bank or a personal loan to finance your project. However, be careful with your loan application, as unsecured loans come with higher interest rates.
If you’re interested in taking out a home improvement loan, keep in mind that the amount you borrow cannot exceed 85% of your home’s equity. Some states have different requirements for home improvement loans, so check with your municipality.
Many home improvement lenders have 0% APR deals for the first year. This can be a great option if you’re looking to improve your home while you are living in it. The introductory period can be up to 12 months, meaning that you don’t have to pay interest on the loan for the entire year.
Other home improvement financing options include a home equity line of credit. These are installment loans that are repaid over five to 30 years. They may include closing costs and origination fees, but are secured against your home.
A home equity loan is one of the best ways to secure cash for a home improvement project. But you will need stellar credit and a co-signer.