10 Ways San Diego Homeowners Can Finance Their Major Home Improvements
Planning major home improvements can be exciting. Time for that bathroom, kitchen or yard to get an updated look! However, the financing aspect may be stressful. The good news is that San Diego homeowners do have options—as many as 10, in fact. See if any of the following approaches such as working with hard money lenders San Diego resonate with you.
Here’s how to finance home improvement:
- Mortgage refinance: If your mortgage interest rate is relatively high, you could refinance your mortgage loan and use the savings to pay for your renovations.
- Cash-out refinance: You can normally get up to 80 percent of your home’s value.
- Bridge loan: A bridge loan is commonly used to get you the money to buy a house before you sell your current house. You may be able to use some of the proceeds from a bridge loan to improve your current house and enhance its sale value. These loans tend to be for less than 12 months.
- Personal loan: This could be a good choice if you have nice credit but lack significant equity in your home.
- Credit card: If you have the money to pay your balance in full every month, using a credit card could be ideal, especially if you earn cash back or other rewards for the money you spend.
- Home equity loan: This amounts to a second mortgage and can be useful if your first mortgage interest rate is low, you have good equity and you’d prefer to receive a lump sum payment.
- Home equity line of credit: Borrow against the value of your home, and you get a period of time such as 10 years to use your line of credit.
- Cash: If you have the time and patience and your improvements aren’t urgent, it may make sense to save up.
- Barter: Creativity can go a long way. Offer a product or service to a renovation company in exchange for their work or a discount.
- Combination: Use two or more of the above methods to finance your renovations.
For more information on bridge loans or other types of loans, get in touch with bridge loan lenders such as North Coast Financial.