When it comes to home improvement, there are many options available to homeowners. They can use a personal loan, a home equity loan, or a line of credit. The best option depends on what the homeowner’s goal is and how much home equity they have in their home. A personal loan is best for projects that are short-term and a home equity loan is better for long-term projects.
One of the most common and affordable home improvement projects is a new front door. This can add curb appeal and help to make your house a more attractive place to live. Another popular improvement is putting up a fence. Construction of fences has skyrocketed over the past three years.
According to a survey from Axiom, a marketing firm in Minneapolis, there are plenty of people who want to improve their home in 2021. Some of these plans include installing a new driveway or patio. Others will hire a professional to handle the project.
Homeowners are spending more on renovations and repairs than ever. Nearly one in four plan to spend more than $1,000 on a home improvement project in 2021. But while most of these projects will make your home more functional, they also can negatively affect its resale value.
If you’re thinking of tackling a large remodeling project, it’s a good idea to choose the most efficient route. Whether you’re planning a major upgrade or simple cosmetic change, a home equity line of credit may be the right answer. You can borrow up to 85% of your home’s value and pay it off over five to 30 years with fixed monthly payments.
Another option is to use a personal loan, which does not require collateral. However, you’ll need to prove that you have enough equity in your home to cover the cost of the remodel. Also, it’s important to understand that you may not get the best rates if you have bad credit. Fortunately, there are some online lenders that offer home improvement loans for those with a poor credit history.
When it comes to DIY, the best news is that the number of individuals who plan to do it has risen dramatically in recent years. That’s especially true for younger adults, who are twice as likely to tackle a DIY project as older adults.
Another sign of the boom in the home improvement industry is the growing popularity of landscaping. While a backyard paradise might seem like a great way to add appeal to your house, it doesn’t increase its resale value. Instead, invest in upgrades that can appeal to a broader audience.
Other projects, such as renovating the basement or adding a garage, can boost a home’s livability, as well. Several of these improvements are available through government-issued home improvement loans. Although some of these programs have different requirements by state, they are generally geared toward basic livability improvements.
In addition to the money you’ll need to invest in your home, you’ll need to decide what kind of improvements you should make. It’s important to keep your upgrades in line with your neighbors’ and to invest in quality upgrades.