Jones Group Realtors®
Linda Michaud, Jones Group Realtors®Phone: (413) 478-2676
Email: [email protected]

Finding the best way to finance home improvement projects

by Linda Michaud 12/12/2022

Living room

Major home projects can be costly, which means it's important to find the best way to finance home improvement. While there are plenty of financing options available, each can have serious drawbacks in addition to their benefits. Some situations might benefit from one type over the other.

So, how do you choose? Here is a simple guide to help you figure out the best financing option for your home improvement project:

What is the best way to finance a renovation?

To find the best home improvement loan or financing option, you'll need to know all the options. The main ways homeowners pay for their renovations include:

  • Cash savings.
  • Cash out refinance.
  • Home equity loan.
  • Home equity line of credit (HELOC).
  • Credit card.
  • Home remodel or repair loan.
  • Home improvement loan.

Is it better to finance a remodel or pay cash?

When deciding between financing or cash options, there are several things to consider. Primarily, think about the scope of the project. Are you planning to remodel an entire home, or start with a smaller project? Timelines are also an important factor. Do you need to complete your remodel as soon as possible, or are you more flexible with your time?

For many homeowners, the simplest and safest way to pay for a renovation is with cash. This cash typically comes from a savings account built up over time. However, not everyone has a lump sum ready for a project, which makes loans and other financing options better for homeowners in a hurry.

If you don't have cash on hand but are responsible with monthly payments and have an excellent credit score, a loan - either an unsecured personal loan or a home equity loan - might be more helpful for your situation. Home equity loans and home equity lines of credit use the value of your home as collateral, and can offer more long-term flexibility with payments.

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Ultimately, the best financial choice will come from considering your options and weighing their pros and cons. If you get stuck, remember that consulting a financial advisor or remodeling contractor can be beneficial if you ever need an expert opinion.

About the Author
Author

Linda Michaud

Welcome to my website www.lindamichaudhomes.com. 

I can work for you in Hampshire and Franklin counties. Whether you are buying or selling, I will help you achieve your goals.        

Community and school information for Amherst MA, Hadley MA, South Hadley MA, Hampshire and surrounding towns. You can also find the latest town and Real Estate News, up to the minute listings alerts of New Listings, Price Changes, Back on Markets, Open Houses, Virtual Tours, and much more information about Amherst MA Real Estate, Hadley MA Real Estate, South Hadley MA Real Estate, Hampshire County Real Estate and surrounding towns from my blog.

The Hampshire area schools are fantastic.  Some links you may want to check out follow are below.  As always, please contact me directly to help you answer questions about local schools.

www.arps.org - This site will also take you to the Leverett, Shutesbury, and Pelham schools
www.hadleyschools.org
www.nps.northampton.ma.us
www.ses.sunderland.ma.us/
www.deerfield.edu/
www.southhadleyschools.org/