There are a lot of renovations that can add value to your home, along with making your home more enjoyable to live in. There have been many studies done, but most people know that updating the kitchen and bathrooms can bring a lot of value. However, these renovations can be expensive, and it is important to consider a few factors when thinking about financing your renovation.
Financing Your Renovation
A common way to finance your renovation is to take out a home loan, or refinance your existing home loan. You should do a home loan comparison to see what options you have available, but generally, if you have equity in your home, these could be an option for you.
The average kitchen upgrade costs around $20,000, while an average bathroom upgrade can cost up to $10,000. And it is important to remember that these are average. Beyond value, you want to upgrade in a way that will make you happy to live in your home, and you could very well exceed this.
If you’ve run the home loan calculator and decided that refinancing or taking out another mortgage just won’t work, there are other options that add value and beauty to your home.
Some less expensive projects that still add value include garage door replacement, entry door replacement, new flooring, or even adding a deck. These projects not only cost less, but could be more “do-it-yourself” as well.
With these smaller options, there are also other financing options available. You could put these on your home equity line of credit and pay it off over time. Many big box hardware stores also offer 0% APR incentives, which could be a good way to finance the project over a shorter period of time.
Of course, you could also set up an emergency fund just for home improvements. After a year of adding in a set monthly amount, you could probably pay cash for a project or two and save yourself the hassle of any late payments or finance charges.
Either way, there are many options available to renovate to improve the value of your home. Some are more expensive and require financing, while others are cheaper, but still improve your home.