Owning a home is a dream come true. But the costs of homeownership can sometimes feel like a challenge.
So where does that leave you if you’re hoping to expand your square footage, replace appliances or give your home an updated look?
You shouldn’t be worried about the financial impact of your home improvement projects. Here are four options to keep things affordable:
- Use your equity.
The best source for renovation costs may be your home itself. If you’ve built up equity, a home equity loan or line of credit could help finance your project.
If current interest rates are lower than yours, refinancing may lower your monthly payment. Then you can save the difference to pay for home improvements.
- Rethink your savings.
Saving for potential future emergencies is smart. But if home improvements are needed, earmark part of your savings for that. You can even open up a high-yield account for those savings to make sure you only spend them on maintenance.
- Calculate your return.
Using your savings or taking out a loan for renovations is daunting. One way to assure yourself that it’s a smart decision is by determining how much the project will add to your home’s resale value. See what your return is likely to be with the latest Cost vs. Value report.
- Try starting small.
A full kitchen remodel might be on your wish list, but is it in your budget? You can still make improvements, just on a smaller scale.
Painting the walls or cabinets and changing out light fixtures, hardware or window treatments are all quick fixes that give you a fresh look while you save for bigger things.