Whether you want to do some home improvements to add value or you simply need to make your home safer, there are a variety of ways to finance your project. A mortgage or a home equity loan can provide you with the funds you need. However, you will want to find the best option for you. The best mortgage or line of credit will depend on your circumstances. You should also compare rates and terms to find the right one for your needs.
A study by the Harvard Joint Center for Housing Studies indicates that the start of the new year will bring big improvements to the market for home remodeling and renovation. According to the study, the number of Americans planning to complete a home improvement project rose nearly seven percent in the first month of the year. In addition, the number of homeowners planning to hire professionals to perform their remodeling jobs increased from 71 to 83 percent.
A study by Houzz Inc shows that nearly one-third of homeowners are currently in the midst of a home improvement project. Among those who are in the process, 67 percent plan to renovate their existing homes. Another 37 percent are preparing to undertake a major home improvement project in the near future.
The average homeowner spends $25,000 to complete a home improvement project. This includes items such as interior upgrades, garden work, and exterior renovations. It is estimated that homeowners will recoup 74 cents for every dollar they spend on home improvement when they sell their homes.
The Angi Home Improvement Survey suggests that the market for DIY home improvement products has increased by more than 50% over the past year. This is due to the increased competition among vendors and the introduction of private labels. This is in part because the market for the DIY home improvement products has a wide product assortment and a high penetration of physical stores. It also has a significant number of unorganized vendors, or aggregators.
Using a home equity loan for your home improvement project is a good idea for the following reasons: It offers the chance to get a lower interest rate than your typical personal loan; it allows you to access the lowest rates; and it gives you the flexibility to use your home equity as you need it. You can also borrow up to 85% of the value of your home, which can be useful for larger projects.
If you decide to go the personal loan route, you will want to shop around for the best deal. You can check out a variety of lenders, or you can look at home improvement credit cards, which offer up to 18 months to pay back the balance on your balance at 0% APR. It’s also important to check out any additional loan options that may be available, such as a second mortgage or HELOC.
Regardless of which route you choose, be sure to consider your situation and the home improvement project you are considering. The best mortgage or line of credit will match your financial needs and the home improvement project you are planning.