How to Finance That New MN Home Remodeling Project

If you’re thinking about a home renovation, the first thing you should probably consider is how you’re going to pay for it.  Home improvement projects often involve a substantial investment, so when it comes to the price that you’re going to be paying for that remodeling project, you might think twice about moving forward with it.  Most people don’t have the funds to pay for home remodeling up front, but there are actually many financing options.

Choosing Home Improvement Financing

Of course, some people simply put money aside until they’ve got the funds to tackle a project.  But if you do not have enough money saved up for your home remodeling plans, financing could be the way to go.

We know that once most homeowners have decided to improve their homes, the goal is to get it going quickly. Or perhaps the project is something that needs to be done to protect your home, such as a roof replacement.  With this in mind, you need the money and you need it fast. Financing the project can help you get things going right away when saving until you’ve got the funds isn’t practical.

Starting the Process:  Make an appointment to sit down and talk with a lender regarding the financing that you’d like to have done. This is a must when it comes to working with any bank for any reason. You need to know terms, how much you qualify for and what you need to qualify. Your project should also be covered under the loan terms so that you can actually use the money for it. The bank should be reasonable regarding their payment terms and interest rates. Shop around and find someone that is actually trying to help you finance.  It doesn’t have to be the lender that holds your mortgage.

Evaluating Which Financing to Go With:  Every type of loan is given on a case by case basis. This means that depending on your income and credit history, you might be able to qualify for one but not the other. Here is just an idea of the types of loans available to help with your home remodeling project.

• Cash out refinancing – If you have equity in your home, then you can use this cash to get the remodeling projects done. You have to pay it back but you will be able to do so with lower rates on your equity loan and mortgage together.
• Home equity lines of credit and home equity loans – They both are similar to one another. They finance based on how much equity you have in your home. The interest you pay on these loans is able to be claimed on your taxes. The interest rates are generally very reasonable.
• Value added loans – These loans go off of the added value of the home once the renovations are complete. If you have a lot of potential for the project that you’re doing, you may be able to borrow more than what your home is worth.
• Homeowner loans – This loan is based on your credit rating and income, not your equity. You will have a higher interest rate and a lower loan amount, but it is a more cut and dried process that usually doesn’t require much in terms of documentation, home appraisal, etc.

Of course, there are a number of other options.  You may qualify for a grant if you’re increasing your energy efficiency.  Some districts around the Twin Cities funds to help homeowners do that.  The bottom line is, investigate your options before making a decision, because you may have multiple sources of financing available.

If you’re considering financing your exterior home improvement project, consider us at Window Outfitters. We offer financing to qualified customers that are looking to boost the appearance of their home.  Give us a call today to discuss your ideas – we offer no-cost, no-obligation consultations in your  home, and we’re scheduling fall projects right now.

 

Window Outfitters is a premier Window Replacement, doors, siding contractor and installer. As Contractor in the St Paul, Minneapolis, (Twin Cities) Minnesota (MN) metro, we proudly serve, but are not limited to, the following areas: Minneapolis Energy Efficient Vinyl Windows, Replacement Window Contractors Minnesota, Burnsville, Apple Valley, Lakeville, Savage, Bloomington, Edina, Richfield, Eagan, St Paul, Hastings, Minnetonka, Plymouth, Maple Grove, Eden Prairie, Farmington MN, Chaska, Shakopee, Chanhassen, Victoria, Mendota Heights Anderson Windows Minneapolis, Marvin Windows Minneapolis.