Home improvements are an important, if not essential part of your home’s upkeep. But depending on the project, costs can amount to many thousands of dollars causing homeowners to seek outside financing.
While refinancing your mortgage comes to mind for some, financial institutions offer a wide variety of programs. For larger projects, experts say a home equity loan—or second mortgage— may be appropriate. For smaller ones, often a short-term personal loan can help pay for expenses. Some homeowners opt for a HELOC, or revolving home equity line of credit secured by your home. HELOCs may also offer tax advantages not available with other types of loans. In addition to financial institutions, there are government programs in place for homeowners who qualify.
As lenders have different terms and conditions, and varied APRs depending on your credit history, it’s best to explore a number of options before settling on one that’s right for you.
