Spring is knocking at the door. We shake off the winter slumber and start to look around. As we do, we notice all the things that escaped our attention. Suddenly we see that the bathroom really is a bit of a disaster. And the kitchen definitely needs some work. Maybe our family is growing, and the place is starting to feel crowded. Or, that entrepreneurial seed that has been germinating all winter is now ready to sprout.
We need a home office! We need to remodel.
And, now you’re wondering, where do I get a loan to remodel my home?
Before joining the thousands heading to the Home Depot or ordering the home renovators you first need to ask some other important questions.
1. A budget.
How much is your home remodel project going to cost? A modest remodel of your kitchen costs on average a little more than $20,000. If you are thinking of adding a master bedroom, that could cost you $250,000! You can find good home renovation calculators online.
Be sure to include everything in your budget—materials, equipment rentals if needed, and permit fees. Don’t forget to add roughly 20% or more for the stuff you forgot. If you are hiring a contractor, they will give you an itemized list of all materials and labor costs. Add 10% to the bid they give you to cover surprises.
2. Can you afford it?
Does your home remodel fit into your current budget? Do you have the cash saved up? Maybe a luxury spa bathroom can be postponed? Prioritize the essentials. If you do not have enough in hand, how much do you need to borrow? Can you afford the payments within your current income-expense structure?
Is your home renovation project worth it? Where do you live now? If you invest in remodeling, will you be able to recoup the cost when you sell? Would it be cheaper, in the long run, to move and buy something else?
3. Are there ways to save money?
Now, we return to the question,
Where do I get a Loan to remodel my Home?
First, let’s talk about where you should not go—a home equity loan or your credit cards.
Unfortunately, many homeowners go the route of financing their remodel projects by taking out a home equity loan. Or, they charge the project on their credit cards. Both are poor choices. If you refinance or take out a home equity loan then you are adding to your mortgage debt. A home equity loan means that you are putting your home up as collateral. In these times of income disruptions and economic uncertainty, a home equity loan might be a risk.
Putting the expenses on your credit card means higher monthly bills. Can you afford to pay off the balance? If you pay only the minimum, then you could easily double the amount you actually spent to remodel your home. Even worse, if you miss payments, you can find yourself facing higher interest rates and late fees and ruin your credit.
What’s the Best Answer?
The best answer to your question, “where do I get a loan to remodel my home?” is from an online peer-to-peer lender. Personal home improvement loans are unsecured. You do not need to use your home as collateral, which is great especially if you don’t have so much equity in your home right now. A P2P home improvement loan is especially helpful if your credit is not so good.
At Peerform, for instance, you can get a home improvement loan up to $25,000. The fees are low, interest rates are favorable and there are no hidden terms. The online application procedure is easy, speedy and you get an answer quickly. Payments are automatically deducted from your bank account. One less bill to remember and your payments will always be on time. Your credit score will be protected and even improved. Of all the options, an online home improvement loan is your best answer to your question: where can I get a loan to remodel my home?
