Home improvement ventures cost quite a bit of money. Thankfully, there are financing options to lighten the burden. There are several ways to finance your home improvement plans. You can take out a home equity loan, do a cash-out refinance, or get a personal loan. Custom Installations Inc., your siding contractor, takes you through the available options.
Refinance Your Mortgage
If your mortgage interest is higher than the current rates, refinancing is a good option. It could lower your rate and your monthly payments, freeing up cash for your dream renovation. A cash-out refinance on your home’s equity is another option. Lenders will generally let you borrow up to 80% of your home’s value. This can be enough to pay off your current mortgage with some more cash to spare.
Be aware of this though: you’ll be using your home as collateral for a bigger loan. As such, you’ll be financing short-term costs with long-term debt. All these add interest and other fees to the cost of renovations or maintenance. It’s a good option only if your home improvement will increase your home’s value.
Home Equity Loan
A home equity loan is another way to finance a home improvement, such as the installation of a new metal roofing system, for instance. Instead of getting a line of credit, as in a HELOC, you’d receive a lump sum of money. This makes sense if you don’t want to refinance your first mortgage which has a very low-interest rate. The interest rate in a home equity loan is usually higher than with a cash-out refinance.
A home equity line of credit (HELOC) is another option for home improvement financing. Unlike a refinance, though, it doesn’t pay off the original mortgage. Instead, you get a line of credit which is usually up to 80% of your home’s value, minus the amount of your home loan.
Custom Installations Inc. has financing options to accommodate all your needs from roofing services to custom projects. We can handle upgrades to increase the value of your home over time. Realize your dreams today with convenient financing options in Lake Forest, Illinois. Call us today at (847) 979-5522 to discuss your financing needs.