A renovation can transform your living space into the home of your dreams. You can make specific changes that enhance the enjoyment you get out of your home. However, a renovation can be hugely expensive. All homeowners need to make smart decisions about financing the project.
Financing Options for Your Renovation
The homeowner has several options to finance a home renovation:
These are the most common ways to finance a renovation.
The Risk of Bankruptcy
Paint Color: Ivory White by Benjamin Moore.
If you take on additional debt, you need to fit that monthly payment into your personal budget. Consumers who take on more debt than they can afford run the risk of bankruptcy. Bankruptcy is defined as a legal proceeding involving a person or a business that is unable to repay outstanding debts.
Investopedia explains several reasons why an individual may declare bankruptcy. Here are the top 3:
Understanding these situations can help you make better decisions about your own finances.
Budgeting your Payments, Improving your Credit Rating
To properly finance your renovation, determine how much of a loan payment you can afford. That amount should fit into your monthly budget. Your budget should include all of your expenses, and some amount of savings.
You can find loan calculators on the web. These tools allow you to plug in a dollar amount, interest rate and a loan repayment date. The calculator will give you the monthly payment, based on the assumptions you use. A borrower can adjust the components and change the monthly payment amount.
As you borrow money and repay it on time, you’ll build your personal credit rating. Over time, a better credit rating will allow you to borrow more money- and pay lower interest rates.
Use these strategies to finance your remodeling. You can make the home improvements you really want, and work your way toward a better credit score.
Sources: Via Sotheby’s Homes.
Thank you for shopping through Home Bunch. For your shopping convenience, this post may contain AFFILIATE LINKS to retailers where you can purchase the products (or similar) featured. I make a small commission if you use these links to make your purchase, at no extra cost to you, so thank you for your support. I would be happy to assist you if you have any questions or are looking for something in particular. Feel free to contact me and always make sure to check dimensions before ordering. Happy shopping!
Wayfair: Huge Cyber Monday Sale – Up to 80% OFF on Furniture and Decor!!!
Serena & Lily: Thankful Sale 25% OFF Everything!
Joss & Main: Huge Sales on Early Cyber Monday Deals – Up to 80% Off!
Pottery Barn: Cyber Monday Sale + Free Shipping.
Anthropologie: 30% off Everything – New Arrivals!
Saks Fifith Avenue: Designer sale up to 50% Off.
Nordstrom: Designer Clearance – Up to 40% Off!
If I am wrong, right me. If I am lost, guide me. If I start to give-up, keep me going.
Lead me in Light and Love”.
Have a wonderful day, my friends and we’ll talk again tomorrow.”
Luciane from HomeBunch.com
No Comments! Be The First!