Getting the Funds For Your Home Improvements

Many people often feel that their home needs a little improvement. Whether it is the addition of a new room or a kitchen remodel, these upgrades can get a bit expensive. If you have a limited amount of money in the bank, doing these home improvement projects may seem like they are years away.

But if you think that the changes are necessary, there are several financial options available to you.

Personal Loans

The best possible choice for financing your home improvement project is a personal loan. Fortunately, applying for personal loans in Utah and other states can be made easier. These loans are unsecured so this means you don’t have set up your house as collateral. The main factor that affects how much you will get is your credit score. Additionally, personal loans are quick. You can expect the money within the day. But you have to be careful though.

Check out the interest rate and the additional fees that the lender may put on the loan. Finally, the loan might not be enough since personal loans are dependent on your credit score. Be ready to shell out some cash to supplement it.

Refinance Your Mortgage

Another popular choice for financing a home improvement project is a mortgage refinance. You are already paying money on the loan, so using it to improve your house can be a good idea. The popular choice is to use a cash-out refinance, which allows you to borrow enough money to pay off your current mortgage and have some extra. You will then have to pay that new loan. This is a rather risky choice though. Only use this option when you are paying for a home improvement that greatly adds to the value of your house.

House keys being handed with home loan form

Credit Cards

People always think of big home improvement projects. There are small upgrades that you can do to your home like adding some cabinets or getting some fixtures. If you have a credit card, using them can be a good idea. As long as the project will cost below $15,000, you should be reasonably safe. It can even be a bonus since some credit card companies offer bonuses for increased spending on a card. But remember that you need to pay off that debt as soon as possible so you don’t have to deal with the high interest.


Another popular way to finance home improvements is to use a home equity line of credit (HELOC). This is a loan that uses your house as collateral, similar to a mortgage. The difference is that this is not a single loan. It is a stream of credit, which means if you need money, you can get more. This makes it perfect for long-term projects. The trouble is that since your home secures the loan, you might end up foreclosing on it if you do not keep on making payments. Only use this option if you are financially secure.

Getting the money for your home improvement project is not easy. You need to do it right or you’ll waste your effort. Work closely with your contractor and designer so that the results would be worth the investment.

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