Home Renovation: Can You Afford It?
Some people love to work on their own homes, and others
are all thumbs and dangerous around a hammer and nails.
Regardless of whether they are a do it yourself type
or feel more comfortable relying on a professional contractor,
consumers who want or need to renovate their home have
one thing in common, they all need cash to make it happen.
A second mortgage loan or home equity line of credit
can be the way to go for many home owners who find themselves
either wanting, or absolutely needing, to make renovations
to their home. Whether you are plagued by bad plumbing
or a leaky roof, or just want to update that shabby
old kitchen with some new cabinets and tile, borrowing
against the equity in your home can be a great way to
improve your family’s enjoyment of your home as
well as its market value.
However, remember that some home improvements, such
as whirlpools, elaborate gardens or other high maintenance
additions, will not necessarily increase, and may indeed
actually have a negative affect on, the home’s
resale price. Check with your real estate agent to discuss
how the renovations you are considering are likely,
in his or her experience, to impact your house’s
Regardless of what type of improvements you have in
mind, the flexibility of a home equity line of credit
is often a good fit with financing home renovations.
The costs of labor, material and other related expenses
can be hard to predict, and a home equity line of credit
allows you to hedge against the possibility of going
over budget without borrowing more than you need.