It’s critical to plan your budget for a home improvement project. But before you could allocate funds to particular jobs like roof and adding solar panels, you should have a good idea of the different financing options available to you. Below are some of the most common ways to help you finance a remodel.
Home Equity Loan
The main advantages of home equity loans are the fixed interest rates and fixed repayment terms. With a fixed amount to pay every month, you can better anticipate and plan your future expenses. Moreover, in this type of loan, you can borrow a lump sum of money with the value of your home as collateral. This enables you to borrow up to 85% of the value of your home.
Home Equity Line of Credit (HELOC)
With HELOC, you are given a line of credit that you can borrow against, and you only have to repay the amount that you have actually used. It works just like credit cards, which can be convenient for some homeowners. However, your payments will likely fluctuate depending on the amount you have borrowed. A HELOC also has an initial draw period that typically lasts for 10 years. After this span of time, you’ll be in a repayment period, and you won’t be able to borrow money. If you will be doing multiple projects over a specific period and you’re using this type of loan, make sure to plan and work closely with your roofer.
Personal loans can be a good option to consider since they have fixed interest rates, fixed monthly payments, and fixed terms. They also don’t require any collateral. However, they can impact your credit score.
Credit cards usually have high interest rates. However, many card issuers offer 0% interest promos for a limited period. For example, you can pay for your roofing project in installments for 12 months with no interest. But since these promos generally have shorter terms, your monthly payments could still be higher. That said, you might want to use credit cards for less expensive projects only.
As one of the top roofing companies in the area, JJ Quality Builders of the Palm Beaches can ensure quality workmanship and superb customer service. We offer an array of services, ranging from interior or exterior painting to roof replacement. Call us at (561) 932-4181 or fill out our contact form to request an estimate.