Remodeling Your Home? Consider a Home Equity Loan

Home improvement

Home improvement is an investment in your home and is a positive way to add value to your property. It can be done for personal preferences, or to add safety features. When planning a project, take the time to research the contractor and make sure the work is done properly. A poorly executed project could end up costing you more money in the long run.

If you are planning to remodel your house, consider a home equity loan. These loans are essentially second mortgages, so you are borrowing against your home’s equity. They can be used for college, medical expenses, or for other reasons. Typically, you must have at least 20% of your home’s value to qualify for a home equity loan. But, if you are a homeowner with good credit, you may be able to secure a low-interest rate.

Some homeowners choose to do their own projects, while others hire professionals to do the work. The survey found that nearly one-third of consumers plan to do some home improvement work themselves. However, more than half plan to hire professionals to do all or some of their projects.

In a new survey, Axiom, a Minneapolis marketing firm, asked consumers about their recent projects and plans for future improvements. Eighty-four percent of respondents said they intend to spend more time on their home improvement projects in 2021 than they did in 2017. This is the highest percentage since Axiom began tracking the numbers seven years ago.

According to the survey, homeowners’ most common projects include adding decks, fences, or patios. Another popular project is upgrading the landscaping. Landscaping can add color to the outside of the home and retouch worn areas.

Increasing mortgage rates have put a damper on home remodeling. While it’s possible to borrow up to 85% of your home’s value, it’s important to keep in mind that these loans are unsecured. Also, you’ll need to have a good credit rating to qualify for a home equity loan.

For homeowners looking to do their own home renovations, there are plenty of credit cards that offer introductory 0% APR periods for up to a year. Many of them also offer cashback rewards for purchases.

Whether you choose to do your own home improvement projects or hire a professional, remember to check your contractor’s license and references. Also, don’t forget to create a detailed plan of what you’d like to do so you’ll know what to expect.

Whether you’re looking to upgrade the exterior of your home, add an extra bedroom, or simply redo your bathroom, there’s no reason why your house won’t become more livable and beautiful. The key is to plan ahead and stay within budget. You don’t want to end up with a backyard paradise that doesn’t add any value to your home.

Finally, don’t forget to consult your CPA before starting a project. Especially if it will impact your resale value. Make sure your plan is a worthwhile investment that will pay off in the long term.