Do you have your sights set on a home improvement project? Are you interested in taking action, but unsure of how you’ll pay for it? Are you considering a loan?
As the name suggests, a home equity loan allows you to tap into the equity you’ve built, thus borrowing the money you need for your project (or many other uses, for that matter).
When compared to other types of loans, such as a personal loan, you’ll find that a home equity loan is easier to apply for and that the interest rate is typically lower (thanks to the fact that your home acts as collateral).
So, with all that in mind, let’s examine five home improvement projects you can fund with a home equity loan:
1. Outdoor Living Area
There’s nothing more enjoyable than an outdoor living area that provides a comfortable place to relax. However, as you’ve probably come to learn, transforming your current space into one you can be proud of is easier said than done.
With funds from a home equity loan, you’ll have a clear idea of your budget. This will allow you to shop around accordingly.
2. Roof, Windows, or Siding
These aren’t the most exciting upgrades to your home, but they’re definitely among the most important. If your roof, windows, and/or siding aren’t up to par, you’re inviting damage to your home, which will end up costing you more money in the long run.
It doesn’t matter if you need to upgrade one of these or all three, don’t hesitate to take action when necessary.
3. Kitchen Remodel
A new kitchen may be just what you need to put a smile on your face. From the cabinets to the counters, from the floors to the appliances, there is no limit as to what you can do in this space.
While a full kitchen remodel is sure to set you back tens of thousands of dollars – if not more – it’s also one of the best ways to increase the value of your home.
4. Bathroom remodel
Think about how much time you spend in your bathroom. Is it more than you originally thought?
Forget about spending another day in a damp, dirty bathroom that does nothing for you. A remodel can bring your space to life, making it much more enjoyable every time you have to brush your teeth, wash your hands, or take a shower.
5. Converting Unfinished Space
Do you have an unfinished space in your house that is calling for attention? Most commonly, this is a basement, attic, or space above your garage.
By finishing this space, you give yourself and family another place to hang out. And best yet, you’re adding square footage to your home, which increases its value. It’s truly the best of both worlds.
If you want to tackle one or more of these home improvement projects, strongly consider how you’ll pay for it. As you learn more about the details of a home equity loan, you may find that it’s the best way to fund your project.