Thinking about sprucing up your home or conducting some roof replacement for your old roof? You’re most likely thinking of other ways you can fund these projects of significant expense in order to give your family the beautiful home you just know they deserve. As it turns out, there are actually quite a few ways you can do so.
In this article, we’ll be discussing with you the various ways you can finance your home improvement projects and the pros and cons of each.
The Various Ways You Can Fund Your Projects
When it comes to conducting a roof repair or home improvement projects, paying cash either upfront or after the job is one of the more popular ways to go. You can even combine them with another financing option to reduce the amount you have to pay in interest.
Pros: No debts or interest fees
Cons: Depending on the project you want to start, it’s hard to save for it.
If you have decent credit, it’s possible you can get offers of 0% interest on your credit cards. However, if you want to use your credit card on your home improvement project, you might want to only use them on projects under $15,000, such as roof replacement jobs, to make paying off the loan easier.
Pros: Easy to qualify. You don’t risk losing your home on an unsettled loan.
Cons: Beware of expiration dates on offers. High interest rates when offers expire. Short payback period.
Home Equity Loans
These are basically second mortgages with a fixed rate for the loan’s lifespan and you get your money in a lump sum. Some HEL can have you pay back the principle and interest in the span of 15 years with monthly payments. Recommended if you need a set amount of money for something else with a few to spare to make the payments.
Pros: Can take 15 years to pay off via monthly plans.
Cons: Takes 15 years to pay off. Transactions fees can be a bit pricey. Potential pre-payment penalty for paying the loan off early.
If you need a general contractor to work on your home this spring, turn to Masters Roofing for your home improvement needs. We are your number one provider of residential roofing and siding. Give us a call at (844) 400-4774 or fill out our contact form to send us a message and learn more about our services. We serve clients in Cordova, TN, and other nearby areas.