TIC TAC REMODELING FINANCE OPTIONS

Choose the Best Financing Option

If you don’t have cash on hand to make improvements to your home, there are four common home improvement loan options that can help you access the needed funds.

1. Home equity loan or credit line: Gore considers this the most affordable option. These loans may provide the lowest interest rates, longer repayment terms which equate to low monthly payments, and the interest may be tax deductible. However, the approval process can be lengthy as some lenders require income and employment verification, as well as a home appraisal. But once you have established a line of credit, you’ll be able to access the money right away.
   
   
2. Term loans: Unsecured personal loans may be approved within three or four business days, but the payments and interest rates are typically higher than home equity loans or lines of credit. Also, the terms on these loans are much shorter — usually 1 to 7 years — which creates a much larger monthly payment and may restrict your monthly cash flow.
   
   
3. Credit cards: Credit cards can give you instant access to money which can be crucial in emergencies, but the interest rates may be higher than a home equity loan or line of credit. Depending on your situation and need, credit cards could be a good option for financing home improvements. Ideally, credit cards should be used at a level that can be paid off completely each month. Also, if your project costs end up extending beyond your credit limit, it may be too late to get a home equity loan to finish the project in a timely manner.
   
   
4. Financing from the service-provider: While some service and product providers offer financing options, you may find the terms are not usually as good as they are with a home equity loan or line of credit.