When you discover water stains around your ceiling, you know immediately it’s time to call the roofing contractor. However, you may also realize that you’re still short on funds to conduct the emergency repairs, or any home improvement project, for that matter. Luckily, there are numerous ways in which you can finance any emergency repair or home improvement project.
In this post, D-Wing Construction discusses the various home improvement financing methods you can choose from to make your home better than ever.
Cash is the classic method of paying for your home improvement projects, especially if you don’t have a credit card or aren’t qualified for any loans. However, this isn’t a feasible option if you need to rush any repairs since you need to save up for a sufficient amount to pay for the outright renovation. An advantage of using cash, on the other hand, is it does help you stay within your budget.
If you don’t have the cash on hand, using a credit card is another option you can consider. While certain credit cards give rewards for every dollar you spend, keep in mind that you’ll want to pay off the balance within a short amount of time. This is because credit cards often come with higher interest rates compared to other financing methods, making repayment a bit difficult over time.
Mortgage refinance is a viable way to lower your home improvement rate and monthly payments. Lenders will usually let you borrow enough to pay off the current mortgage and take out more cash for your home improvement projects. Before using this method, however, keep in mind that your home will be used as a collateral for bigger loans.
Home Equity Line of Credit
A Home Equity Line of Credit, or HELOC, is another way to borrow against your home’s value. However, unlike a refinance, you get a line of credit up to 80% of your home’s value. It comes with a draw and repayment period, with the former often lasting about 10 years for you to spend the money in your credit line. The repayment period, on the other hand, lasts 15 years and will make your monthly payments higher. To make an informed decision in regards to your financing options, you can always turn to the financing experts of roof installation contractor, D-Wing Construction.
Home Equity Loan
Unlike a HELOC, a home equity loan allows you to receive a lump sum of money instead of a line of credit. This is the option to go for if you want to avoid refinancing your first mortgage, especially if it has a low interest rate.
Turn to D-Wing Construction for your home improvement needs. We are your leading provider of siding and window replacement. Give us a call at (630) 405-5843 or fill out our contact form to schedule an estimate. We serve homeowners in Arlington Heights, IL, and other nearby areas.